KPower secures EPCC contracts worth RM510mil
KUALA LUMPUR: KPower Bhd has secured four engineering, procurement, construction, commission and completion (EPCC) contracts with total value of RM510mil.
In a filing with Bursa Malaysia, KPower said its wholly owned subsidiary, KPower Engineering Sdn Bhd had accepted the letter of awards from Cabaran Hijau Sdn Bhd (CHSB), Selat Serasi Sdn Bhd (SSSB), Denai Delima Sdn Bhd (DDSB) and Koridor Mentari Sdn Bhd (KMSB).
The contracts are to undertake amongst others EPCC of mini hydro power plants in the state of Pahang Darul Makmur with a capacity of 18.7 MW in Sg. Jelai Kecil, 13.9 MW in Sg. Telom as well as 12 MW in Sg. Lemoi and 5.25 MW in Sg. Kampar in the state of Perak Darul Ridzuan.
KPower said the scope of work under these appointments 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 projects.
The relevant parties will enter into a definitive agreement within 60 business days from the date of acceptance of the awards with the commencement of the execution of the projects to begin immediately.
“These projects represent our commitment to continue making in-roads in the renewable energy infrastructure space within Malaysia. The EPCC contracts in Pahang are our first in the state, while the additional contracts in Perak enable us to continue to expand in the state,” group managing director Mustakim Mat Nun said in a separate statement.
“The contracts mark our concentrated effort towards securing continuous projects for the group as we work to achieve our target of an additional RM2bil orderbook by this financial year-end.
“With Malaysia’s and Asean’s target of 35% of renewable energy share of installed capacity and also our pre-existing local and regional presence, we are well positioned for growth,” he added.
To date, KPower has secured a sizeable RM2.3bil orderbook in Malaysia, Asean countries and Nepal since June 2019.
For this financial year, inclusive of this award, KPower has secured RM1.2bil worth of projects and is confident to secure RM2bil for the financial year ending June 30, 2021.