Kinergy Advancement Bhd (KL:KAB), via its unincorporated joint venture with Sinohydro Corporation (M) Sdn Bhd, has secured a RM646.3 million engineering, procurement, construction, and commissioning (EPCC) contract to develop a 120-megawatt (MW) power plant in Labuan.
In a bourse filing on Monday, the sustainable energy solutions provider said the letter of award (LOA) was issued on May 13 by Rancha Power Sdn Bhd (RPSB). RPSB is a joint venture comprising PG Energia Sdn Bhd (a wholly owned unit of Petronas Gas Bhd, KL:PETGAS), Sustainable Power Sdn Bhd (a subsidiary of Sabah Electricity Sdn Bhd), and SEC Power Sdn Bhd (a unit of Sabah Energy Corporation Sdn Bhd).
KAB stated the project is expected to positively contribute to its future earnings and enhance its technical expertise in delivering large-scale energy infrastructure.
“The LOA was secured through a competitive bidding process and awarded to the KABEH-Sinohydro JV to undertake the full EPCC scope. The 120MW power plant facility is well within KABEH’s engineering, procurement, and construction capabilities,” the group said.
Upon completion, KAB noted that the project will further reinforce its position in the sustainable energy sector.
The project is scheduled to commence on May 20 and will remain in force until all works, including the warranty period, are completed.
On Monday, KAB shares closed unchanged at 33.5 sen, giving the group a market capitalisation of RM712.6 million. Year to date, the stock has declined 2.9%.