Tuesday, October 11, 2011

KNM gets US$200m contract in Sri Lanka from Octagon unit

KUALA LUMPUR: KNM GROUP BHD [] has landed a conditional US$200 million (RM638 million) contract to build a waste to energy plant in Sri Lanka from OCTAGON CONSOLIDATED BHD []'s subsidiary Orizon Renewable Energy (Private) Ltd (ORE).

It said on Tuesday, Oct 11 that its subsidiary KNM Process Systems Sdn Bhd had been awarded the contract to build the plant capacity to process up to 1,000 tons per day of municipal solid waste for generation of a minimum of 40 MW of gross electrical energy in Karadiyana, Thumbowila, Kesbewa, Colombo.

It said the conditional award was subject to among others, the signing of a definitive agreement, based on terms and conditions acceptable to the parties including the financiers of the project by December 2011.

KNM said the project, which involves the generation of renewable energy from municipal solid waste at the Project site covering up to 20 acres of land in Karadiyana, was to be implemented under Public Private Partnership between ORE and the Waste Management Authority of Western Province, an agency under the Government of Sri Lanka.

The company said the project was expected to contribute positively to its earnings for the financial years ending Dec 31, 2012, 2013 and 2014.

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