Mega First Corp Bhd’s (MFCB) 80 per cent indirect subsidiary Don Sahong Power Co Ltd has entered into a concession agreement with the Lao government to develop a 260 megawatt hydropower project at the Mekong River’s Hou Sahong Channel worth US$500 million.
In a filing to Bursa Malaysia today, MFCB said the concession agreement is for the development of the run-of-river Don Sahong Hydropower Project on a build, operate and transfer basis.
The project, which is expected to achieve commercial operation in early 2020, is capable of generating about 2,000 GWh of electricity per year, said MFCB.
It added that the total project cost will be funded by internally generated funds and long-term debt.
It said the concession period will end 25 years after the commercial operation date, adding electricity generated by the project will be sold to Electricite Du Laos under a Power Purchase Agreement to be executed later.