KUCHING: Hock Seng Lee Bhd (HSL) has been awarded two contracts worth RM54.3 million by Sarawak Energy Bhd (SEB).
The contracts secured through open tender are related to the 2 x 312MW Balingian Coal-Fired Power plant project in Mukah. These comprise Package C05A – earthworks and common facilities – and Package C05C – operator’s residence.
HSL received two letters of acceptance from SEB on the contracts on Feb 8. The scope of works for the contracts include piling, earthworks, infrastructure works, building works for staff accommodation and related amenities as well as the associated mechanical and electrical works.
” The contracts’ period is 18 months and physical construction work is expected to commence in February-2019. ”
“The contracts’ period is 18 months and physical construction work is expected to commence in February-2019,” HSL said in a filing with Bursa Malaysia yesterday (Feb 11).
The company said the contracts were expected to contribute positively to its earnings and net assets as the project progresses during the contract period.
However, the transaction will not have any effect on HSL’s share capital and substantial shareholdings.
The Balingian coal-fired power plant will add an additional 624MW of generating capacity to the state grid when commissioned, according to SEB group chief executive officer Datuk Sharbini Suhaili at a recent event to mark the project’s 13 million safe man-hours over the project duration.
The additional power would help SEB to meet the demand from both retail and bulk power SCORE customers.
Sharbini has said that the power plant facility would utilise indigenous Sarawak coal found in the vicinity of the plant location.
The power plant is the first in Malaysia to use circulating fluidised bed boiler of CFB technology, allowing it to handle a wide range of coal types, including high moisture coal commonly found in the Balingian region. It is also the largest of its kind in Southeast Asia.
In late December 2018, SEB awarded another contract to a consortium made up of HSL, Larsen & Toubro Ltd and Larsen & Toubro (East Asia) Sdn Bhd for the Matang 275/132/33/Kv substation project for about RM90.99 million.
HSL has a 45 percent stake in the consortium. The project’s scope of works include earthworks, piling, civil infrastructure works, building and its related mechanical and electrical works.
The contract period for the completion and commission of the project is 32 months, commencing on Jan 7, 2019.
These latest contracts from SEB have further boosted HSL’s group order book. As of Sept 30, 2018, the group had RM2.4 billion worth of works unbilled. In the first nine months of 2018, HSL secured RM157 million worth of new contracts.
The group’s on-going mega projects are Pan Borneo Highway work package, Kuching centralised wastewater management system (package 2) and Miri’s wastewater project.
