Kumpulan Powernet ventures into Nepal with RM208m hydro power plant project

KUALA LUMPUR (May 13): Kumpulan Powernet Bhd (KPower) has bagged a US$48 million (RM208 million) contract from Ghaurishankar Power Development Pvt Ltd (GDP) to build a mini hydro power plant in Solukhumbhu, Nepal.

KPower was awarded the project today, and is expected to complete the project within 36 months, it said in a filing today.

“The scope of work includes but is not limited to 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 project,” it said.

It said KPower and GDP will enter into a definitive agreement within 60 business days from the date of acceptance of the award.

“We are pleased to be awarded this project with Ghaurishankar Power Development as it symbolises a new milestone for our company as we are officially setting a foothold in Nepal for the first time.

"This is as a result of our management team’s collaboration with a renowned European turbine manufacturer in seeking new opportunities for the development of a hydro power plant in Nepal for the past two years,” said managing director of KPower, Mustakim Mat Nun, in a separate statement.

Mustakim added that with the current project under the group’s belt, the company has met the internal order book target of RM1 billion for 2020.

KPower is currently trading at a near two-month high of RM2.09, having more than doubled from 86 sen on March 23.