PESTECH International Bhd has received a A$3.5 million (RM10.36 million) construction contract for PNG Power Ltd (PPL) Arawa mini-grid, in Papua New Guinea (PNG).
It told the stock exchange today that it received the countersigned formal instrument of agreement from DT Global Asia Pacific Pte Ltd, a company incorporated in Australia, on April 3.
Pestech said the contract, which is part of the Economic and Social Infrastructure Programme (ESIP), is valued at A$2.23 million.
It said that included in the contract price is the provisional sum totalling A$430,000 for selected items to be determined during the execution of the project.
It added that over and above the contract price, there is an additional A$1.27 million pre-agreed variation scope to be confirmed by May 1, 2023.
Similarly, there is a provisional sum totalling A$150,000 for selected items to be determined during the execution of the project, it said.
“As such, the total potential contract price could be A$3.5 million for the entire full scope of the project,” said Pestech.
Under the project, Pestech will be engaged in the engineering, procurement, and construction turnkey works for the hybrid diesel and photovoltaic generation system and associated works at PPL’s existing facility in Arawa, Autonomous Region of Bougainville.
Pestech said that ESIP via the project seeks to deliver increased efficiency, reliability and lower greenhouse gas emission.
“Over its service life, the completed system is expected to provide PPL and its consumers with a reliable source of energy that is easier and more cost-effective to maintain.
Pestech said the project, which is expected to be completed by Jan 10, 2024, will contribute positively towards its revenue and earnings in the financial years ending June 30, 2023 to 2024.
Pestech shares gained one sen, or 4.17% to close at 25 sen today, with a market capitalisation of RM248 million