KUALA LUMPUR: JAKS Resources Bhd has entered into two engineering, procurement and construction (EPC) contracts to facilitate its joint venture for a 1,200MW power plant project in Vietnam.
The company signed an EPC contract with the consortium consisting Southwest Electric Power Design Institute Co. Ltd and China Power Engineering Consulting Group International Engineering Company Ltd (CPECC Consortium), and the second EPC contract with its unit, Golden Keen Holdings Ltd.
The contract with CPECC Consortium is for services and work provided to JAKS Hai Duong Power Company Limited (JHDP), JAKS’ wholly-owned subsidiary. The total contract price is US$1.061bil (RM4.002bil), which JHDP will pay on a fixed lump sum basis.
The second contract with Golden Keen is for services and work provided to JHDP, worth US$454.5mil (RM1.712bil), also paid on a fixed lump sum basis.
Both contracts will be effective once all conditions are satisfied, including the termination of the EPC contract between JHDP and Wuhan Kaidi Electric Power Engineering Co Ltd, on July 31, 2015.
CPECC Consortium shall obtain and deliver to JHDP a performance bond for totalling 2% of the contract price to secure the due and proper performance of CPECC Consortium’s agreements and obligations under the first EPC contract.
Meanwhile, Golden Keel shall procure the subcontractor to deliver to JHDP a performance bond for US$6.4mil (RM24.14mil) to secure the due and proper performance of Golden Keen’s agreements and obligations under the second EPC contract.
CPECC Consortium and Golden Keel shall achieve the completion of the performance tests and satisfaction of the conditions for the first generation unit or the plant no later than 42 months from the site handover date for the first generation unit.
