Kumpulan Powernet rises 2.16% on Nepal mini hydro plant job

KUALA LUMPUR (May 14): Shares in Kumpulan Powernet Bhd (KPower) rose as much as 2.16% at mid-morning today following a RM208 million mini hydro power plant project win in Nepal.

At 11.14am, KPower rose four sen to RM1.89, giving the group a market capitalisation of RM154.97 million. The counter saw 1.7 million shares traded.

In a bourse filing yesterday, the group announced that it had secured the contract from Ghaurishankar Power Development Pvt Ltd (GPD) yesterday to build a mini hydro power plant in Solukhumbu, Nepal.

It said the project is expected to be completed within 36 months and 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 further added that KPower and GPD will enter into a definitive agreement within 60 business days from the date of acceptance of the award.

In a separate statement yesterday, KPower managing director Mustakim Mat Nun said the group has met its internal order book target of RM1 billion for 2020.

He said the contract win symbolises a new milestone for KPower as it was officially setting a foothold in Nepal for the first time.