A wholly-owned subsidiary of KPower, KPower Engineering Sdn. Bhd. (KPEng) has been awarded four contracts with a total value of RM510 million from Cabaran Hijau Sdn. Bhd. (CHSB), Selat Serasi Sdn. Bhd. (SSSB), Denai Delima Sdn. Bhd. (DDSB) and Koridor Mentari Sdn. Bhd. (KMSB).
The projected profit from the four awarded contracts is expected to amount to RM51 million, roughly 10 percent from the mentioned contracts.
The contracts are to undertake the engineering, procurement, construction, commission, and completion (EPCC) of mini hydro power plants in Pahang with a capacity of 18.7 MW in Sg. Jelai Kecil, 13.9 MW in Sg. Telom, 12 MW in Sg. Lemoi, and 5.25 MW in Sg. Kampar in Perak.
The scope of work includes the preliminary study, engineering, construction, supervision, testing, commission, reliability test, remedy of defect during the defect liability period.
Additionally, the provision of all equipment, both permanent works and temporary works in connection with the projects.
The associated 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.
KPower’s Group Managing Director, Mustakim Mat Nun said the projects represent their commitment to continue making in-roads in the renewable energy infrastructure space within Malaysia.
“The contracts mark our concentrated effort towards securing continuous projects for the Group as we work to achieve our target of an additional RM2 billion orderbook by this financial year end.
“With Malaysia’s and ASEAN’s target of 35 percent of renewable energy share of installed capacity and our pre-existing local and regional presence, we are well positioned for growth which presents us with opportunities to capture and simultaneously expand our growth in the energy sector within Malaysia and regionally,” Mustakim highlights.
To date, the group has secured a sizable RM2.3 billion orderbook in Malaysia, ASEAN countries and Nepal since June 2019.
For this financial year, KPower has secured RM1.2 billion worth of projects and is confident to secure RM2.0 billion for the Financial Year End 30 June 2021 inclusive of this latest award.