OTHERS - PESTECH INTERNATIONAL BERHAD ("PESTECH" or "the COMPANY") -
NOTIFICATION OF AWARD FROM SYARIKAT SESCO BERHAD
PESTECH INTERNATIONAL BERHAD
The Board of Directors of PESTECH (“Board”) wishes to announce that its wholly-owned subsidiary company, PESTECH Sdn. Bhd. (“PSB”), through a joint venture with Sky High Construction Sdn. Bhd. (“Sky High”) (“JV”) had on 13 December 2023 accepted the Notification of Award (“NOA”) from Syarikat SESCO Berhad (“SSB”) (Contract Ref. No. PLS-220117) dated 8 December 2023 for the Entinggan – B 275/(33)kV Substation project (“Entinggan Substation”), a transmission substation design and build contract at a total contract amount of RM109,979,000 (Ringgit Malaysia: One Hundred and Nine Million Nine Hundred and Seventy Nine Thousand only) (hereinafter referred to as the “Contract”). The allocation of the contract value to PSB and Sky High under the JV, as stated in the tender submission document, is 60% (PSB) and 40% (Sky High), respectively.
The commencement date of the Contract shall be 26 December 2023 (or such later date as may be notified by SSB) (“Commencement Date”), with the time for completion of the whole works being 23 months from the Commencement Date. The Contract covers the civil, structural and electrical works and integration into the existing Sarawak networks.
The development of Entinggan Substation is expected to ensure the reliability of supply and cater for the rapid growth in the organic and industrial load in Kuching, Sarawak. The award of NOA signifies that PESTECH remains active and competitive in the procurement of new projects as well as remains positive towards the overall prospect of the industry that PESTECH Group is operating in.
The Contract is expected to contribute positively towards the revenue and earnings of PESTECH in accordance with the stages of the progress to be recognised in the financial years ending 30 September 2024 and 30 September 2025, and is expected to contribute positively to the net asset per share of the Company.
PESTECH does not foresee any exceptional risk other than the normal operational risk associated with the Contract. 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 Contract.
The Board is of the opinion that the Contract is in the best interest of the Company.
This announcement is dated 14 December 2023.
