Reference is made to the announcements dated 6 September 2012, 11 September 2012 and 13 September 2012.
Contract Agreement
The Board of Directors of PESTECH wishes to announce that PESTECH Sdn. Bhd. ("
PSB"), a wholly-owned subsidiary of the Company, had on 18 September 2013 entered into a Contract Agreement with Electricite du Laos ("
EDL") to build a 115kV double circuits transmission line from Pakse, Lao People's Democratic Republic ("
Lao PDR") to the Lao-Thai border ("
Project") on a turn-key basis for a contract price of USD29,257,278.00.
The signing is the culmination of the Memorandum of Understanding signed with EDL and an unincorporated joint venture between VLV Soumpholphakdy Sole Co., Ltd (
VLV) and PSB on 10 September 2012.
Along the process of procurement of the Project, both VLV and PSB had mutually agreed that PSB should undertake the engineering, procurement and construction ("EPC") of the Project solely rather than on an unincorporated joint venture basis.
The Project is expected to commence by December 2013 and completed within 18 months.
The Project 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 Project 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 Project.
The Board of Directors of PESTECH is of the opinion that the Project is in the best interest of the Company.
This announcement is dated 19 September 2013.