KPower clinches first EPCC contracts in Indonesia worth RM54.6 mln

Kumpulan Powernet Bhd's (KPower)

KUALA LUMPUR, Nov 5 -- Kumpulan Powernet Bhd (KPower) has clinched its first engineering, procurement, construction and commissioning (EPCC) contracts in Indonesia for hydro power plants worth RM54.6 million. 

The construction services provider said the contracts, awarded to its wholly-owned subsidiary KPower International (L) Ltd (KPIL), were for the EPCC and completion for two mini hydro power plants in Sumatera's Bengkulu province.

PT Pat Petulai Energi awarded a RM29.71 million contract to construct a 3.1 MW power plant in Sg Simpang while PT Klaai Dendan Lestari gave a RM24.92 million contract for a 2.6 MW power plant.

KPower group managing director Mustakim Mat Nun said under these appointments, KPIL would undertake the engineering, construction, supervision, testing, commission, reliability test, remedy of defect during the defect liability period and provision of all equipment, both permanent works and temporary works in connection with the projects. 

"The relevant parties will enter into a definitive agreement within 90 business days from the date of acceptance of the awards with both projects expected to be completed within 24 months of the commencement date," he said in a statement today. 

He said the contracts were in line with the group’s plan for expansion throughout the ASEAN region after its successful foray into the sustainable energy and utilities space in 2019.

"These contract wins are not only a ringing endorsement of our capability in the renewable energy infrastructure space in Indonesia but they also augur well with our plan to further enhance our competitive edge and geographical presence in the specialised EPCC segment within the ASEAN region,” he said.

To date, the group has secured a sizeable RM1.4 billion orderbook in Malaysia, ASEAN countries and Nepal. It aims to further increase its orderbook by an additional RM2.0 billion in the financial year ending June 30, 2021. 


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