Continental Energy declared that the Malaysian Government has granted about US$ 11.5 million to Tawau Green Energy (TGE). Continental Energy is an unconventional energy company and has a 10% stake in TGE. At present, TGE is developing a geothermal energy resource at Apas Kiri site, which is situated in the southern part of Sabah, Malaysia and close to the Tawau city. Apas Kiri will have a net capacity of 30 MW and will be the first geothermal energy development in Malaysia. The geothermal energy project is likely to be completed by 2015.
The grant was awarded under a Facilitation Funds Agreement, which was signed in Kota Kinabalu, Malaysia, on May 25, 2012. Ramzi Raad, MD of TGE; Dato' Seri Dr. Ali Hamsa, Director General of the Public Private Partnership Unit of the Prime Minister's Department; and Zakaria Saad , Head of Business Banking of Bank Pembangunan Malaysia Berhad (BPMB) signed the Facilitation Funds Agreement.
Under the Facilitation Funds Agreement, BPMB will distribute the funds. TGE will use the proceeds of the grant to pay for expenses related to road construction and other infrastructure enhancements involving the geothermal power resource development in Apas Kiri.
Continental Energy’s Chief Executive Officer Richard L. McAdoo, who also serves as the Geotechnical Director for TGE, witnessed the signing ceremony. According to him, the grant reiterates the commitment of both the Sabah Government and the Malaysia Government to utilize renewable energy sources so as to address electrical power production deficits in Sabah. Such type of fiscal incentive is important for making green field renewable energy projects as successful ventures.
McAdoo added that this kind of government support was instrumental in making Continental Energy to invest in TGE, who played a key role in stressing the advantages of the Apas Kiri geothermal energy development project to the residents of Sabah.
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