Mega First awards RM1.3bil EPCC contract to China-based firm

KUALA LUMPUR: Mega First Corp Bhd’s (MFCB) 80% owned indirect subsidiary Don Sahong Power Co Ltd has awarded an engineering, procurement, construction and commissioning (EPCC) contract worth US$320mil (RM1.34bil) to Sinohydro Corp Ltd.

MFCB, whose activities include power generation, lime quarrying and property development, told Bursa Malaysia that the job was to develop, construct and commission the Don Sahong hydropower project over 50 months.

On Sept 15, the Lao government had awarded Don Sahong Power Co Ltd a 25-year concession right for the development of the 260MW run-of-river hydropower project in the Hou Sahong Channel of the Mekong River.

The project, which is expected to start commercial operation in early 2020, will be able to generate about 2,000 gigawatt hours of electricity per year.

Electricity generated by the project will be sold to Electricité Du Laos under a 25-year power purchase agreement signed last month.

MFCB said Sinohydro was a reputable infrastructure construction company established in China with expertise in a wide range of infrastructure projects including water and hydropower facilities.

It has constructed many hydropower projects in China, Malaysia, Laos and other parts of the world, including the Three Gorges Hydropower Project in China and the Bakun hydropower project in Sarawak.

MFCB’s share price has jumped 13.8% since a month ago to close at RM2.55 on Friday (unchanged from the day before).