KUALA LUMPUR: Kumpulan Powernet Bhd (KPower) has bagged four contracts worth RM510 million from four companies to build their hydro power plants in Pahang and Perak.
The contracts were awarded by Cabaran Hijau Sdn Bhd, Selat Serasi Sdn Bhd, Denai Delima Sdn Bhd and Koridor Mentari Sdn Bhd.
KPower will undertake the engineering, procurement, construction, commission and completion (EPCC) of mini hydro power plants in Pahang with a capacity of 18.7 megawatt (MW) in Sungai Jelai Kecil, 13.9MW in Sungai Telom as well as 12MW in Sungai Lemoi and 5.25MW in Sungai Kampar, Perak.
The scope of work includes the preliminary study, engineering, construction, supervision, testing, commission, reliability test, remedy of defect during the defect liability period and provision of all equipment.
"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," KPower said in a statement today.
Group managing director Mustakim Mat Nun said the projects represented KPower's commitment to continue making in-roads in the renewable energy infrastructure space within Malaysia.
Mustakim said the EPCC contracts in Pahang were KPower's first in the state, while the additional contracts in Perak enabled the company to continue xpanding there.
"The contracts mark our concentrated effort towards securing continuous projects for the company 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 per cent of renewable energy share of installed capacity and also our pre-existing local and regional presence, we are well positioned for growth," he said.
Mustakim said KPower was optimistic of its prospects in view of the resilient outlook for the energy sector and the expected economic recovery.
KPower has secured a sizeable RM2.3 billion orderbook in Malaysia, Asean countries and Nepal since June 2019.
For this financial year, inclusive of the latest contracts, KPower has secured RM1.2 billion of projects and is confident of securing RM2.0 billion for the year ended June 30, 2021.