Hock Seng Lee secures RM54.3m contract for Balingian power plant

KUALA LUMPUR: Hock Seng Lee has won an open tender for a contract with Sarawak Energy Bhd for the Balingian coal-fired power plant project in Mukah, Sarawak, worth RM54.3mil.

The group said in filing with the stock exchange that the scope of works include pilling, earth works, infrastructure works, building works for staff accommodation and related amenities as well as the associated mechanical and electrical works.

The contract falls under Package C05A (earth works and common facilities) and Package C05C (operator’s residence) of the project.

According to Sarawak Energy, the plant is the first in Malaysia to use circulating fluidised bed boiler or CFB technology, allowing it to handle a wide range of coal types including high moisture coal commonly found in the Balingian region.

Hock Seng Lee’s contract will run for 19 months with physical construction work expected to commence in February 2019.

“The Contract is expected to contribute positively to the earnings and net assets of HSL Group as the Project progresses during the contract period.

“However, the transaction will not have any effect on the share capital and substantial shareholdings of HSL,” it said.

Source: TheStar