AMBANK ISLAMIC TO PROVIDE RM285 MLN GREEN FINANCING FOR JOHOR WASTE MANAGEMENT PROJECT

KUALA LUMPUR, June 20 (Bernama) -- AmBank Islamic Bhd has announced a RM285 million green financing for Econas Resource To Energy Sdn Bhd (ER2E) to develop the Resource Recovery and Disposal Complex (RRDC) and Resource to Energy-Scheduled Waste (R2E-SW) in Pengerang, Johor.

In a statement today, the bank said the initiative marks a significant step towards sustainable waste management in Malaysia, particularly in the strategic development area of Pengerang Integrated Petroleum Complex (PIPC) at the southern hub of Malaysia’s downstream oil and gas industries.

“This initiative will enable ER2E to process and dispose of up to 150,000 tonnes per annum of scheduled waste, addressing the increasing demand for waste treatment and contributing to a cleaner environment,” it said.

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AmBank Islamic chief executive officer Eqhwan Mokhzanee said the initiative demonstrates the bank’s commitment to fostering sustainable waste management solutions and contributing to a cleaner and safer environment.

“We are committed to supporting projects that drive sustainable development and environmental stewardship and we are proud to be at the forefront of this significant environmental initiative,” he said.

AmBank Islamic said ER2E’s project would provide extensive socio-economic benefits for the surrounding population in Pengerang, Johor.

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“In addition to better waste management, the initiative is expected to generate job opportunities and stimulate local business growth, thereby attracting further development and investment to the area," it said. 

Meanwhile, ER2E executive chairman Datuk Mohd Shafiee Mohd Sanip said the project would be a catalyst for the business community in Pengerang. 

“We are delighted to have AmBank Islamic’s commitment in joining us towards a better future for Malaysia,” he noted. 

ER2E has commenced construction of its Phase 1 facility which includes pyrolysis, microwave, solidification and secured landfill and currently at 99 per cent completion with the expected business start date in the third quarter of 2024.

Phase 2 would see the construction of the R2E-SW incinerator plant, aimed at generating electricity from burning scheduled waste and is expected to commence by the fourth quarter of 2024, with full operational integration targeted by the third quarter of 2026.

-- BERNAMA