KUALA LUMPUR (Nov 9): Nestcon Bhd said it has entered into an agreement with Singapore’s firm Hatten Land Ltd’s subsidiary to form a joint venture (JV) company to secure, supply, construct, develop and manage solar photovoltaic plants and facilities.

Nestcon, via its wholly-owned subsidiary Nestcon Sustainable Solutions Sdn Bhd (NSS), has inked an agreement with Hatten Land’s unit Hatten Renewable Energy Sdn Bhd (HRE), according to a bourse filing on Tuesday (Nov 9).

As for the shareholding structure of the JV company, 70% will be owned by NSS, while 30% owned by HRE.

“By an invitation of Linbang Ventures Sdn Bhd (LV), the JV company will undertake the development of a 3.19 MWp rooftop solar photovoltaic system project, which consists of 6,373 solar panels and associated system on the roof of Dataran Pahlawan Melaka Megamall in Melaka,” said Netscon, adding that the project will contribute positively to its future financial performance.

“The JV company will enter into a power purchase agreement (PPA) with LV to undertake the works with the adoption, execution, and implementation of the supply agreement with renewable energy (SARE), and the JV company shall manage the plant for LV for the term of 21 years,” Nestcon noted.

Nestcon shares closed half a sen or 1.12% lower 44 sen on Tuesday, giving the construction services provider a market capitalisation of RM283.28 million.