Kumpulan Powernet awarded RM65.88 mln project in Laos

KUCHING: Kumpulan Powernet Bhd (Kpower) has received and accepted a letter of award from Zhenghong Building Road & Bridge Construction Co Ltd (Zhenghong) to undertake amongst others, the design, supply, construction, commissioning and completion of an eight megawatt ( MW) small hydropower plant at Nam Samoy, Kasi District in Vientiane Province of the Lao People’s Democratic Republic.

The contract price is a fixed lump sum price of US$15.88 million (equivalent to approximately RM65.88 million), which is inclusive of the supply and installation of mechanical and electrical equipment. The project is expected be completed within 18 months from the commencement date.

Zhenghong and KPower shall enter into a definitive agreement within 30 business days from the date of the award or such other extended period as determined by Zhenghong.

The scope of work includes the 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.

“In line with our plans, we are pleased to be awarded our first hydropower construction project,” KPower’s Group managing director Mustakim Mat Nun said in a statement yesterday.

“This is in line with our plans to expand into provision of project management and construction related activities in energy and utilities, infrastructure and logistic with a focus to incorporate green technology and green energy element. This is also significant as it also symbolises the company officially having its foothold in Lao PDR.

“Once the definitive agreement is officially signed, the award is expected to contribute positively to the net assets, consolidated earnings and earnings per share of the company for the financial year ending June 30, 2020 and subsequent periods.”