KUALA LUMPUR (May 16): A joint venture between Hextar Capital Bhd’s (KL:HEXCAP) associate, Transgrid Ventures Sdn Bhd (TGV), and CD Electrical Engineering Sdn Bhd has won a RM427.5 million contract from Tenaga Nasional Bhd (KL:TENAGA) to build Malaysia’s first 500-kilovolt (kV) power transmission system, the highest voltage level in the country.

The super high-voltage power transmission intake will carry large amounts of electricity over long distances with minimal energy loss before it's distributed to lower-voltage systems.

Hextar Capital said in a statement the project involves building a 500/275kV gas insulated substation in Gurun East, Kedah.

It includes supplying, installing and commissioning the substation with three 1,050 Megavolt-Ampere transformers, along with civil works. The project is set to be completed within two years.

TGV must provide a performance security of RM21.38 million (5% of the contract value).

Hextar Capital managing director Johnson Chang, in a statement, said the contract win shows Tenaga’s confidence in its engineering skills and strengthens its role in supporting the national grid and Malaysia’s energy development. The project is expected to boost the group’s performance and order book in the mid-term.

Hextar Capital’s share price closed 1.79% higher on Friday to 28.5 sen, giving it a market capitalisation of RM138.8 million. The stock is down 19.7% year-to-date.