KPower awarded RM296m Perak mini hydro power plant contract

PETALING JAYA: Kumpulan Powernet Bhd’s unit KPower Engineering Sdn Bhd has been awarded a RM296 million contract from Kangsar Hidro Sdn Bhd, to undertake, among others, the engineering, procurement, construction, commission and completion (EPCC) of a mini hydro power plant with total capacity of 27.3MW in Sungai Singor, Perak.

Kangsar Hidro is a joint venture entity between Yayasan Perak, a Perak state agency and Kangsar Capital Sdn Bhd, which was established to undertake the development of this project.

The scope of work includes preliminary study, engineering, construction, supervision, testing, commission, reliability test, remedy of defect during the defect liability period and provision of all equipment, and permanent and temporary works in connection with the project.

The project is expected to be completed within 48 months from the commencement date, or Dec 24, 2024, whichever is earlier.

Group chairman Datuk Abdul Karim Abdullah said the contract is part of the group’s efforts in securing continuous projects, in order to acheive its additional RM2 billion order book target by the end of FY2021 ending June 30.

“With the recent Asean target of 35% energy installed capacity by renewable energy by 2025 and also our pre-existing regional presence, we are well positioned to our growth,” he said.

To date, the group has secured a sizeable RM1.4 billion order book in Malaysia, Asean countries and Nepal.

Group managing director Mustakim Mat Nun said the project will further solidify KPower’s position and strengthen its platform as it explores other opportunities.

“While hydro remains our strong point, we are actively venturing into other products and markets. We are optimistic of the prospects of the group in view of the resilient outlook for the energy sector and the expected economic recovery.”

KPower plans to further expand its geographical presence in the energy sector within Asean and South Asia. The group also intends to build its capabilities in other renewable energy spectrum and widen its product offerings to include hybrid wind/solar energy projects targeting the Europe, Middle East and Central Asia markets.