By NUR HANANI AZMAN / Pic By ARIF KARTONO
KUMPULAN Powernet Bhd (KPower) has bagged a US$48 million (RM207.84 million) contract from Ghaurishankar Power Development Pte Ltd (GPD) to build a mini-hydropower plant in Solukhumbhu, Nepal.
The contract will require KPower to design, build and commission a mini-hydropower plant with a capacity of 22.9MW.
KPower expects to complete the project within 36 months from the commencement date or not later than May 12, 2023, it said in an exchange filing yesterday.
“We are pleased to be awarded this project by GPD as it symbolises a new milestone for our company as we are officially setting a foothold in Nepal for the first time.
“This is as a result of our management team’s collaboration with a renowned European turbine manufacturer in seeking new opportunities for the development of hydropower plants in Nepal for the past two years,” KPower MD Mustakim Mat Nun (picture;left) said in a statement.
He said the project would contribute to its net assets and earnings for the years ending June 30, 2021 to June 30, 2023.
GPD, KPower and any of its nominated subsidiaries will enter into a definitive agreement within 60 business days from the date of the award or such other extended period as determined by GPD.
The project will enable KPower to meet its internal orderbook target of RM1 billion for 2020, Mustakim added.
KPower rose to a two-month high of RM2.18 after the announcement but profit-taking saw the counter close 2.1% or four sen lower at RM1.85 yesterday, valuing the company at RM154.97 million.
In February, the group also secured a US$15.9 million contract from Zhenghong Building Road and Bridge Construction to build a hydropower plant at Nam Samoy in Vientiane, Laos.
Under the contract, the company firm will undertake, among others, the design, supply, construction, commissioning and completion of an 8MW hydropower plant in the Vientiane province.
The South-East Asia country has increased its electricity exports by 145% over the past five years amid a growing number of hydropower plants.
The country also sells over 570MW to Vietnam, and the Laos government expects to increase the power supply to 1,000MW in 2020, 3,000MW in 2025 and 5,000MW by 2030.