The Board of Directors of PESTECH (Board) wishes to announce that its wholly-owned subsidiary company, PESTECH Sdn Bhd (PSB), has on 30 August 2013 received a letter of award from SEB for a total value of RM95,624,800.47 in relation to the design, engineering, procurement, construction, testing and commissioning of MAPAI 275/33 kV substation (MAPAI Substation) with provision for future 500kV switchyard with four (4) future 500/275kV transformer bays expansion.
This is the second project PSB is entrusted upon from SEB.
MAPAI Substation is one of the important nodes for the 500kV backbone transmission project aims at reinforcing Sarawak states existing power transmission system. This 500kV transmission line will provide an alternative source of power supply should the one and only existing line experience a breakdown. It is planned as a robust network to channel power from the many remote hydro and coal power generation sources to cater to the increasing needs throughout the State and particularly, the Sarawak Corridor of Renewable Energy (SCORE) area.
The Project is expected to commence by 1 October 2013 and to be completed within 23 months.
The Award will have no material effect on the revenue and earnings of the Group for the financial year ending 31 December 2013 but is expected to contribute positively to the future earnings and net assets per share of the Group.
PESTECH does not foresee any exceptional risk other than the normal operational risk associated with the Award such as availability and changes in the prices of raw materials. PESTECH will take the 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 Award.
The Board of Directors of PESTECH is of the opinion that the Award is in the best interest of the Company.
This announcement is dated 30 August 2013.