Mega First says its hydropower project in Laos has commenced operation
KUALA LUMPUR (Nov 4): Mega First Corp Bhd said its 80% subsidiary Don Sahon Power Company Ltd (DSPC) has received a certificate from the government of Laos confirming that the Don Sahong hydropower project has commenced commercial operations on Oct 1.
In a filing with the bourse, the group said the 25-year concession period will end on Sept 30, 2045.
Mega First inked the concession agreement for the project on Sept 15, 2015, under which the Laotian government granted the rights to DSPC for the development of the 260MW hydropower project in the Hou Sahong Channel of the Mekong River.
Under the agreement, the electricity generated by the project will be sold to Electricite Du Laos under a power purchase agreement.
The company had previously expected the project to achieve commercial operation in early 2020.
“In accordance with the concession agreement dated Sept 15, 2015, DSPC will be exempted from income tax until the fifth anniversary of the commercial operation date,” it said.
Mega First’s share price rose seven sen or 1.01% to close at RM6.98, giving a market capitalisation of RM3.45 billion.