The Board of Directors of PESTECH (“Board”) wishes to announce that its wholly-owned subsidiary company, PESTECH Sdn Bhd (“PSB”) had on 19 November 2021, received a Notice of Award from NGCP for the contract in relation to South Luzon Substations Upgrading Project 2 at a total contract value as below:-

Offshore portion: United States Dollars Twenty Three Million Four Hundred Sixty Thousand only (USD23,460,000.00)

Onshore portion: Philippine Pesos Seven Hundred Ten Million Seven Hundred Fifty Six Thousand Seven Hundred Sixty only (PHP710,756,760.00) (VAT inclusive)

(hereinafter referred to as the “Project”). 

The Project aims to cater the load growth and provide N-1 contingency to various substations for NGCP in the South Luzon Region. This involves capacity additions, replacement of old and obsolete substation equipment and reconfiguration of the existing substations to ensure reliability and flexibility of the electrical network for achieving sustainable growth of NGCP’s power network. Under the Project, PESTECH shall have full responsibility to design and build according to the requirements of the contract. 

The project involves seven (7) substation components which are independent from each other. The commencement date of the Project will be determined by NGCP later (“Start Date”). The completion period reckoned from the Start Date shall be as follows:

1. Lumban 230/69kV Substation: 600 calendar days
2. Gumaca 230/69kV Substation: 600 calendar days
3. Labo 230/69kV Substation: 600 calendar days
4. Naga 230/69kV Substation: 540 calendar days
5. Daraga 230/69kV Substation:  540 calendar days
6. Tiwi A Substation: 180 calendar days
7. Tiwi C Substation: 180 calendar days

The Project will contribute positively towards the revenue and earnings of PESTECH in accordance to the stage of project progress to be recognised in the financial years ending 30 June 2022 to 30 June 2023.

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 22 November 2021.