KUCHING: Pestech International Bhd (Pestech) has won its first contract worth US$29.3 million from Electricite du Laos (EDL) to build a 115 kilovolt (kV) double-circuit transmission line spanning from Pakse, Laos to the Laos-Thai border.
RHB Research Institute Sdn Bhd (RHB Research) noted that the company, which has offices in Sarawak, has replenished its order book by an additional RM187.8 million, exceeding the research house’s previous forecast of RM175 million.
Pestech secured its first contract in Laos to construct a 115kV double-circuit transmission line spanning from Pakse, Laos to the Laos-Thai border on a turnkey basis.
“The scope of work of the project involves the establishment of a 115kV overhead transmission line (about 40km in length) linking Bangyo S/S in Pakse and Sirindhorn S/S in the Laos-Thai border to maximise the capacity of power transfer between the two countries,” it noted.
“The project, awarded by EDL which is worth US$29.3 million, is expected to start construction by December 2013 and be completed within 18 months. EDL has been working with Electricity Generating Authority of Thailand (EGAT) to supply energy to Thailand.”
Given the rising energy demand in Thailand, the new double-circuit transmission line would complement the existing single-circuit line.
RHB Research has highlighted that Laos is a landlocked country with limited energy resources. Nevertheless, it is able to capitalise on the huge hydropower potential from the Mekong River that flows through the country.
According to Laos’ seventh National Socio-Economic Development Plan (2011-2015), the government intends to build 10 large dams to generate 5,015MW of electricity.
The government aims to increase the household electrification rate from 65 per cent in 2012 to 80 per cent by 2015, and subsequently to 90 per cent by 2020.
Due to this geographical advantage, the country has been commonly referred to as the hydropower “battery” of South-East Asia (SEA).
“Thus far, Pestech has been able to replenish its orderbook by an additional RM187.8 million, exceeding our previous forecast of RM175 million. Early this month, Pestech has won a RM95 million contract from Sarawak Energy Bhd (SEB) to build a 275/33kV substation in Mapai, Sibu.
“We are fine-tuning our forecasts to factor in the new orderbook replenishment. We make no changes to our FY13 forecasts but revise our FY14 estimates higher,” the research house stated.