PETALING JAYA: PESTECH International Bhd’s wholly-owned subsidiary, PESTECH Sdn Bhd has received a countersigned formal instrument of agreement from DT GLobal Asia Pacific Pty Ltd to offer engineer, procure, construct, and commission services at the PNG Power Ltd (PPL) Arawa Mini Grid Autonomous Region of Bougainville, Papua New Guinea for the Economic and Social Infrastructure Program (ESIP).
In a filing with Bursa Malaysia, PESTECH stated the contract price is worth A$2.2mil (RM6.6mil). It added a provisional sum of A$430,000 (RM1.3mil) is also included in the contract price for selected items that are to be determined in the execution of the project.
Moreover, there is an additional sum of A$1.3mil (RM3.8mil) on pre-agreed variation scope over and above the contract price. Similarly there is a provisional sum of A$150,000 (RM441,155).
Hence, the potential contract price is A$3.5mil (RM10.3mil) for the whole project, which is scheduled for completion by Jan 10, 2024.
PESTECH expects this undertaking to contribute positively towards its revenue and earnings which will likely be recognised in the financial years ending June 30, 2023 to June 30, 2024.
The group also noted the ESIP intends to deliver higher efficiency, reliability, and lower greenhouse gas emission through the project.
The completed system is expected to provide PPL and its consumers with a reliable source of energy which is more cost effective to maintain.