Malakoff secures concession to develop waste-to-energy facility in Melaka
MALAKOFF Corporation Bhd has secured a long-term concession from the federal government to develop, own and operate a waste-to-energy (WTE) facility in Sungai Udang, Melaka, under a public-private partnership (PPP) arrangement.
In a filing with Bursa Malaysia, the company said its 60%-owned subsidiary, Sungai Udang WTE Sdn Bhd (formerly Southern Biogas Sdn Bhd), entered into a concession agreement on June 19, 2025, with the Ministry of Housing and Local Government and the Solid Waste and Public Cleansing Management Corporation.
The remaining 40% of Sungai Udang WTE is held by Alam Flora Environmental Solutions Sdn Bhd, a wholly owned subsidiary of Alam Flora Sdn Bhd, which is in turn 97.37% owned by Malakoff.
The proposed WTE facility will be capable of processing up to 1,056 tonnes of municipal solid waste per day and generating approximately 22 megawatts of gross renewable energy.
The power generated will be sold to Tenaga Nasional Bhd under a Power Purchase Agreement to be executed with the concession company.
The project will be implemented under a build-own-operate-demolish model with a total concession period of 34 years, comprising a construction period of three years, followed by 30 years of operations and a one-year closure phase.
Subject to fulfilment of conditions precedent within 12 months from the date of the agreement, the project is expected to commence in the second quarter of 2026.
These conditions include securing the capacity to finance the project and maintaining a minimum paid-up capital of RM5 million.
The government may grant a further three-month extension if needed.
The agreement grants the concession company the right to implement the project and to own and operate the WTE facility.
It also authorises the company to receive, process and dispose of solid waste from a designated area, for which it will be entitled to collect gate fees.
Its board of directors is of the view that the concession is in the best interest of the company. — TMR
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