JAKS enters into RM5.7b contracts

PETALING JAYA: JAKS Resources Bhd's sub-subsidiary JAKS Hai Duong Power Co Ltd yesterday entered into engineering, procurement and construction (EPC) contracts worth RM5.72 billion for its 25-year build-operate-transfer power plant project in Hai Duong Province, Vietnam.
The contracts are to facilitate a proposed joint venture with China Power Engineering Consulting Group Co Ltd, which was announced last month, to invest in a 2 x 600MW coal-fired thermal power plant project in Hai Duong Province. The thermal plant is valued at a project cost of US$1.87 billion (RM7.05 billion).
The first contract was entered into with the Consortium of Southwest Electric Power Design Institute Co Ltd and China Power Engineering Consulting Group International Engineering Co Ltd (CPECC Consortium) while the second contract was entered into with Golden Keen Holdings Ltd, a wholly-owned subsidiary of JAKS Resources.
EPC Contract 1 is worth US$1.06 billion (RM4 billion) and EPC Contract 2 is worth US$454.5 million (RM1.72 billion).
CPECC Consortium will design, execute and complete the works in accordance with EPC Contract 1. CPECC Consortium will also achieve the completion of the performance tests and satisfaction of the conditions for the first generation unit no later than 42 months from the site handover date.
EPC Contract 2 encompasses civil engineering works, such as construction of the independent power producer's infrastructure and buildings, as well as mechanical and electrical engineering works.
JAKS Resources chairman Tan Sri Hussin Ismail believes all stakeholders will take comfort in the award of EPC Contract 1 to the CPECC-led consortium. He said its strong expertise and solid track record in delivering sizeable power plant projects significantly mitigates the construction and completion risks.
"We are equally excited that JAKS will also have a significant role to play in the civil and M&E engineering works via the award of EPC Contract 2 to our wholly-owned subsidiary. We have been developing and strengthening our in-house infrastructure construction capabilities through the years, and this contract will further enhance our positioning as a significant construction player," Hussin said in a statement yesterday.
JAKS' outstanding construction order book now stands at RM2.44 billion.