HeiTech Padu and Austrian partner's Sungai Perak hydroelectric contract worth RM2.5bil
KUALA LUMPUR: HeiTech Padu Bhd says the value of its engineering, procurement, construction and commissioning (EPCC) contract related to the Sungai Perak hydroelectric project is RM2.5 billion.
HeiTech Padu, which formed a consortium with Austria's Hydro GmbH & Co KG (Voith Hydro) for the contract, said its portion is RM903 million.
Voith Hydro will receive around RM134.0 million and €291.4 million (RM1.4 billion), HeiTech said in a Bursa Malaysia filing today.
HeiTech earlier in February said it had received a letter of acceptance from TNB Power Generation Sdn Bhd for the hydroelectric facility project worth RM1.04 billion.
The contract involves electrical, mechanical and civil works at three hydroelectric stations, SJ Temengor, SJ Bersia and SJ Kenering.
The contract began on March 31, 2025 and will run for up to 99 months, ending on June 30, 2033.
"The board envisages that the business of development, ownership, operation and maintenance of renewable energy power plants as well as related EPCC services in relation to energy solutions will become a major contributor to the group's earnings going forward.
"The hydroelectric EPCC project is expected to be the primary revenue driver," it said.
In a separate announcement, HeiTech said it is raising RM43.7 million through a private placement of new shares.
The company said the proceeds will be used to fund the National Integrated Immigration System (NIISe) project and for working capital.
The fundraising will be carried out after a bonus issue of 27.84 million new shares, on the basis of one bonus share for every four existing shares held.
Following the bonus issue, the company's total share capital will increase from 111.35 million to 139.18 million shares.
"The company is allocating RM35 million of the gross proceeds to be raised from the proposed private placement to fund the NIISe project, particularly in the initial stages of design and planning as well as infrastructure and hardware procurement."
About RM7.3 million will be utilised to finance its day-to-day operations which includes staff costs and other overhead costs such as, among others, rental of office and leased lines, it added.
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