KUALA LUMPUR (Oct 16): Mega First Corp Bhd said its 80%-owned power generation unit in Laos, Don Sahong Power Co Ltd has awarded a US$320 million (RM1.34 billion) contract to China's Sinohydro Corp Ltd for the development, construction and commissioning of the Don Sahong Hydropower Project in Laos over a period of 50 months.

In a filing with Bursa Malaysia today, Mega First said Don Sahong Power yesterday signed an engineering, procurement, construction and commissioning (EPCC) contract with Sinohydro Corp for the proposed hydropower project.

The EPCC contract follows the announcement made by Mega First on Oct 1 that Don Sahong Power had secured a power purchase agreement (PPA) for the proposed hydropower project. 

The PPA between Don Sahong Power and Electricité Du Laos (EDL) covers 25 years from the commercial operation of the project. Don Sahong Power will construct a 230kV transmission line from the project’s switchyard to interconnect with the existing EDL grid system.

Sinohydro Corp currently has over 400 international projects under construction in more than 70 countries worldwide, with a total contract value of over US$40 billion. It has successfully constructed many hydropower projects in China, Malaysia, Laos and other parts of the world such as the Three Gorges Hydropower Project in China and the Bakun Hydropower Project in Sarawak. 

Shares in Mega First closed unchanged at RM2.55 today, for a market capitalisation of RM568.26 million. 

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