Unless otherwise stated, all abbreviations used herein shall have the same meaning as those mentioned in the announcement dated 15 November 2022 in relation to the Solar Power Purchase Agreements between Nextgreen Pulp & Paper Sdn Bhd, a wholly-owned subsidiary of the Company and KAB Core Connect O&M Services Sdn Bhd.

The Board of Directors of Nextgreen wishes to inform that the Company has received Bursa Malaysia Securities Berhad’s request dated 16 November 2022 for additional information in relation to the Company’s announcement made on 15 November 2022. The additional information are as follows:

1.        The terms of the solar PV energy to be purchased by Nextgreen Pulp & Paper Sdn Bhd (“NPPSB”) from KAB Core Connect O&M Services Sdn. Bhd.

Pursuant to the SPPAs, the terms of the solar PV energy to be purchase by NPPSB from KAB Core Connect O&M Services Sdn. Bhd., among others, as follows:

Installation Period

The SPS Owner shall, within seven (7) months from the date of obtaining all necessary Approvals for the installation and operation of the Solar PV System (“the Installation Period”) complete the installation of the Solar PV System on the said premises and achieve the Commercial Operation Date for the purposes of Operation, failing which, the Customer shall be entitled to impose Liquidated Ascertained Damages (“LAD”) on the SPS Owner for the delay to be calculated on daily basis until SPS Owner completes the installation and achieved the Commercial Operation of the Solar PV System.

The Customer consents to the installation of the Solar PV System on the said Premises and to the installation of any extension, enhancement or improvement to the Solar PV System by the SPS Owner.

Permit for the Installation

Unless otherwise agreed with the Customer, the SPS Owner shall obtain all Approvals necessary for the Installation and Operation of the Solar PV System within two (2) months from the fulfillment of all Conditions Precedent under SSPAs except Permitting Period, provided always that if there is any delay on the Customers’ part in providing the documents necessary for the application for the Approvals, the period of delay shall be excluded from the computation of the Permitting Period.

The Customer consents to any action taken by the SPS Owner in obtaining the Permits, and the Customer agrees to use its best endeavors to assist the SPS Owner in connection therewith.

Title to the Solar PV System shall be wholly vested in the SPS Owner or any Financier (as the case may be) during the Term, or any extensions thereof (if applicable). The Customer acknowledges and agrees that

(i)               it has no ownership interest in the Solar PV System whatsoever during the Term or any extensions thereof (if applicable); and

(ii)              the SPS Owner shall own all Environmental Incentives, Environmental Attributes and Reporting Rights associated with the Solar PV System during the Term or any extensions thereof (if applicable); and

(iii)             the SPS Owner shall have the right to sell the Environmental Incentives, Environmental Attributes and Reporting Rights on the open market at its sole and absolute discretion.

Operation and Maintenance

The SPS Owner shall be solely responsible at its own cost for the operation and maintenance of the Solar PV System and shall, at all times during the Term maintain the Solar PV System in good operating condition.

Notwithstanding any other provision of the SPPAs, the SPS Owner shall have the right to make such repairs and/or maintenance at reasonable cost as may be necessary, and at the Customer’s cost to restore the Solar PV System to good Operating condition in the event of any default, act or negligence of the Customer or its Personnel. In the event of Downtime, the provision of Minimum Net Energy Output and Consumption shall apply.

2.        The power generating rate agreed between the parties pursuant to the two Power Purchase Agreements (“PPA”).

The power generating rate are negotiated between the Parties on willing buyer and willing seller basis.

3.            In respect of the Phase 2 PPA, the details of the Construction to be completed by NPPSB.

The installation of PV Solar will be conditional upon the completion of the on-going construction of the NPPSB’s plant. It is expected to be completed by 31 December 2022.

This announcement is dated 17 November 2022.