KNM awards RM1.9b contract to China Western Power

KUALA LUMPUR: KNM Group Bhd, via United Kingdom unit Peterborough Green Energy Ltd, has awarded a RM1.9 billion engineering, procurement, construction and commissioning (EPCC) contract to China Western Power Industrial Co Ltd.

Group chief executive officer Lee Swee Eng said the contract pertained to the building of a net 36 megawatt waste-to-energy power plant for KNM’s Peterborough Green Energy project in the UK over 37 months, starting from the first quarter of next year.

China Western Power will finance the EPCC contract.

“Once the project is successfully completed and commissioned, it will contribute another significant stream of long-term recurring income to KNM,” Lee said after the EPCC signing ceremony, here, yesterday.

The contract was signed by KNM chairman Datuk Abdul Halim Mohyiddin and China Western Power chairman Renchao Li.

Lee said within three years, recurring income contribution to KNM would increase significantly to 70 per cent from 15 to 20 per cent currently.

He also said this would be contributed by the first phase of the Peterborough Green Energy project, as well as the second phase of the company’s Thailand bioethanol business, which was being expanded to produce 500,000 litres per day from an existing 200,000 litres.

“For the past five years, KNM had been developing and executing its strategy towards generating recurring incomes and sustainable growth in the long term from its renewable energy, power and utilities business,” he added.

Currently, KNM’s order book stands at around RM2.2 billion which is expected to last for two years. Bernama