The Board of Directors of PESTECH (“Board”) wishes to announce that its wholly-owned subsidiary company, PESTECH Sdn Bhd (“PSB”) had on 8 December 2020, accepted a Notice of Award from NGCP for the contract in relation to the Nabas-Caticlan-Boracay 138kV Transmission Line Project (Substation Portion) (hereinafter referred to as the “Project”) at a total contract value as below:-

Under the Project, PESTECH shall be designing, supplying, installing, testing and commissioning of a new Boracay substation and expansion of the existing Nabas substation. The Project primarily aims to accommodate the projected load growth of Caticlan and Boracay Island. 

The expansion of Nabas Substation includes addition of two (2) bays consisting of four (4) new power circuit breakers from the existing 138kV, breaker-and-a-half configuration switchyard. This expansion will accommodate the new 138kV transmission lines coming from the new Boracay Substation.

Boracay Substation is a new 138/69kV substation consisting primarily of double bus configuration gas-insulated switchgears (“GIS”). The 138kV GIS has five (5) bays to accommodate four (4) feeders and a bus coupler with provision for expansion. The 69kV GIS has six (6) bays to accommodate five (5) feeders and a bus coupler with provision for future expansion. Two (2) new 100 MVA power transformers will be installed in the new substation.

The commencement date of the Project will be determined by NGCP later and the Project shall be completed within the following period:

1. Boracay Substation: 420 days from the commencement date
2. Nabas Substation: 420 days from the commencement date

The Project will contribute positively towards the revenue and earnings of PESTECH in accordance to the stage of project progress to be recognized in the financial years ending 30 June 2021 to 30 June 2022.

PESTECH does not foresee any exceptional risk other than the normal operational risk associated with the Project such as availability and changes in the price of raw materials. 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 Project.

The Board is of the opinion that the Project is in the best interest of the Company.

This announcement is dated 8 December 2020.