Kumpulan Powernet bags RM354m deal for mini hydropower plants in Perak

PETALING JAYA: Kumpulan Powernet Bhd (KPower) bagged a RM354 million award from Kangsar Hidro Sdn Bhd to undertake the preliminary study, design, supply, construction, commissioning and completion of five mini hydropower plants with a total capacity of 32.47 megawatts (MW) in Perak.

In a Bursa filing, the group said the scope of work includes the preliminary study, engineering, construction, supervision, testing, commission, reliability test, remedy of defect during the defect liability period and provision of all equipment, both permanent works and temporary works in connection with the project.

Kangsar Hidro is a joint venture entity between Yayasan Perak, a Perak state agency and Kangsar Capital Sdn Bhd, a wholly owned subsidiary of OHP Ventures Sdn Bhd, which was established to undertake the development of the project.

Currently, Yayasan Perak and Kangsar Capital own 15% and 85% equity interest in Kangsar Hidro respectively. The award constitutes a recurrent related party transaction due to the relationships of KPower directors and its group of companies with Kangsar Hidro.

In a separate statement, KPower managing director Mustakim Mat Nun said this is the second award secured by the group this year, following its RM65.88 million hydropower plant contract in the Lao People’s Democratic Republic.

The company aims to complete works on the project within 48 months from the commencement date or Dec 24, 2024, whichever is earlier.