Sungai Kenerong Hydro Power Plant

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Musteq Hydro Sdn Bhd (MHSD) operated the 20-MW Sungai Kenerong hydro power plant in Kelantan which had a license to generate and supply electricity to Malaysia's state controlled company Tenaga Nasional Bhd (TNB) under a 30-year Power Purchase Agreement (PPA). The plant was made up of the Lower and Upper Kenerong power houses, and began commercial operations in 2000 and 2001, respectively. The hydro power relied on a steady flow of water from the Sungai Kenerong and its tributary, Sungai Semuliang. The PPA with TNB employed a single-tariff structure whereby payments were solely based on the plant's dispatch levels, leading to a less certain income stream. Financial close was achieved in 2001 with the signing of an Islamic banking private debt securities (PDS) issuance programme for RM108 million (US$28.4 million). MHSD was originally owned by Projass Engineering Sdn Bhd (51%) and Musteq Holdings Sdn Bhd (49%). In July of 2003, Eden Enterprises of Malaysia acquired the company for RM39 million (US$10.25 million). Eden said the acquisition would be made through the issue of new shares and a cash payment.