Nextgreen Global Bhd, a Malaysian developer specializing in green economy initiatives, has signed a memorandum of understanding (MoU) with Sawit Palm Oil Industrial Cluster Sdn Bhd (SPOIC) to develop a Green Technology Park on a 400-acre site in Sandakan, Sabah state of Malaysia. SPOIC, a subsidiary of Sawit Kinabalu Group (SKG), is dedicated to developing industrial parks that offer investment opportunities in downstream oil palm processing, biomass, and bio-refinery sectors.
The MoU outlines the formation of a joint venture company (JVC), with SPOIC holding a 70% stake and Nextgreen owning 30%. The initiative will also consider additional projects, including a collection and processing center, a pulp mill, a raw water treatment plant, and a steam boiler. SPOIC will have the first right of refusal for these projects under mutually agreed terms.
Nextgreen will leverage its business networks to attract investors, provide technical support, and oversee project development and management. In contrast, SPOIC will supply the project site, assist with infrastructure development, and facilitate local authority approvals. The MoU will remain in effect for one year, during which the parties will negotiate the detailed terms of the joint venture and related agreements.
(Sources: NextGreen; EdgeProp)
