KUALA LUMPUR (June 29): Kumpulan Powernet Bhd has accepted a letter of award (LoA) to undertake civil works for two mini hydro power plants in Laos for US$40.7 million (approximately RM174.5 million).
The two power plants are Nam Taep 1 and Nam Taep 2, each with 3 x 5 MW generation capacity and are located in Ban Nam Taep and Ban Nam Nameuang, in the district of Xam Tai, in Laos’ Houaphan province.
Kumpulan Powernet, in a filing withBursa Malaysia, said the LoA involves the supply, construction, commissioning and completion of civil works related to the plants.
The letter, it said, was issued by Zhengdong Building Road & Bridge Construction Co Ltd and was accepted by KPower’s wholly-owned KPower International (L) Ltd (KPIL).
“Zhenghong and KPIL shall enter into a definitive agreement within sixty (60) business days from the date of the award or such other extended period as determined by Zhenghong,” it added.
Kumpulan Powernet said the project is targeted to be completed within two years from the commencement date.
Its shares slid 4 sen or 1.75% to close at RM2.25 today, valuing the engineering group at RM188.47 million.