KUALA LUMPUR: Mega First Corp Bhd
's 95%-owned indirect subsidiary Don Sahong Power Company Ltd has entered into a supplemental concession agreement (SCA) with the Lao government and a supplemental power purchase agreement (SPPA) with the Electricité Du Laos following the addition of a new 65MW turbine generator on July 4, 2024, for about US$78mil.
In a filing with Bursa Malaysia, Mega First said the Don Sahong hydropower project now has a capacity of 325MW and is expected to generate about 2,300 GWh per year following the completion of the fifth turbine generator.
Based on the SCA, the new commercial operation date for the entire project will be Jan 1, 2025, and the new concession period will be 25 years from the date.
Don Sahong Power Company has also agreed to pay US$82.5mil upfront to the Lao government in lieu of the royalty payable on 2,140 GWh of energy availability for each fiscal year from Jan 1, 2024, to Dec 31, 2049.
The income tax will be 5% in 2026, progressively rising to 24% in 2030.
Meanwhile, the major changes to the SPPA include the change in the concession period to be in line with the SCA.
Electricité Du Laos shall purchase and pay for all energy availability on a take-or-pay basis in the months of November to May (dry season) every year throughout the SPPA term.
Additionally, for the months of June to October (wet season), Electricité Du Laos shall purchase and pay for energy availability of up to 955GWh on a take-or-pay basis every year during the SPPA term.
For any energy availability above 955GWh, EDL shall purchase and pay for any energy that it dispatches.
The tariff structure has been adjusted to start at six US cents on the commercial operation date, progressively rising to 6.2 US cents in 2029.
The levelised tariff is maintained at the previous rate of 6.15 US cents.
