|PESTECH INTERNATIONAL BERHAD|
|Description||PESTECH INTERNATIONAL BERHAD (“PESTECH” or “THE COMPANY”)- AMENDED CONTRACT AGREEMENT BETWEEN PESTECH (CAMBODIA) LIMITED, A WHOLLY-OWNED CAMBODIAN SUBSIDIARY OF THE COMPANY AND ALEX CORPORATION CO. LTD.|
|Reference is made to PESTECH’s announcement dated 10 March 2014 pertaining to the Contract Agreement executed between with Alex Corporation Co. Ltd., [now known as Alex Corporation (“ALEX”)], a Cambodian multi-faceted business entity and PESTECH (Cambodia) Limited (“PCL”), a wholly-owned Cambodian subsidiary of the Company in relation to the design, engineering, manufacturing, installation, testing and commissioning (“Works”) of the 230KV WEST PHNOM PENH – SIHANOUKVILLE TRANSMISSION LINE AND 230/115/22KV SUBSTATION EXTENSION PROJECT (“Project”) at a contract value of USD86.065 million.
The Board of Directors of PESTECH (“Board”) wishes to announce that PCL, had on 8 February 2017 signed an Amendment Contract Agreement (“ACA”) with ALEX as a supplement and amendment to the earlier Contract Agreement.
The ACA signifies both parties’ agreement to an upgrade of the specifications of the Project (“Upgraded Project”), and accordingly, the adjustment to the total price of the Project at a revised value of USD143,904,000 (United States Dollars: One Hundred Forty Three Million Nine Hundred and Four Thousand) only.
Upgraded Project Details
The Upgraded Project involves the design, engineering, manufacturing, installation, testing and commissioning of the following transmission lines:
The Project shall resume its execution and is to be completed by November 2019.
The Project will contribute progressively towards the revenue, earnings and net asset per share of PESTECH up to its scheduled completion by November 2019.
PESTECH does not foresee any exceptional risk other than the normal operational risk associated with the Project. The Company will take necessary steps to mitigate the risks as and when it occurs.
None of the Directors and/or Major Shareholders and/or persons connected to them, has any interest, direct or indirect in the Project.
The Board is of the opinion that the Project is in the best interest of the Company.
This announcement is dated 8 February 2017.