KUALA LUMPUR (Nov 26): Iris Corp Bhd had on Nov 25 bagged a contract worth US$22 million (RM92.65 million) from the Government of Solomon Islands for the establishment of information and management system of electronic passport and border control.

The Solomon Islands is a nation in the South Pacific forming part of the Oceania Continent, and the country has a populace of approximately 600,000 with English being its national language.

In a filing with Bursa Malaysia today, Iris said that it had entered into a build-own-transfer (BOT) agreement for a term of 20 years commencing from the date of the contract with the Government of Solomon Islands for the establishment of the electronic passport system.

Under the BOT project financing model, Iris will build and own the information systems, software and hardware under the agreement during the term only.

After the expiration of the term, ownership of the same will be transferred to the client (Government of Solomon Islands).

During the term, Iris will be providing maintenance and support services to the client, whose officers will be operating the information systems.

Iris will also finance the costs of design, procurement, supply, manufacture, testing and commissioning of the products, which are defined as Electronic Passports, Border Control System and its related software and hardware.

The group will also recoup such costs including the returns from the supply of the products to the end users via the Immigration Division of the Ministry of Commerce, Industries, Labour and Immigration and from the payment of the official government fees for such products to the users.

The Ministry of Commerce, Industries, Labour and Immigration is the authorised and primary agency or authority responsible for the issuance of all types of secured national identification in the Solomon Islands, and the contract was also executed by a representative of the said Ministry.

Under the terms of the contract, the Government of Solomon Islands will also put in place, completely and satisfactorily implement and bring into force all necessary laws for the scope of works to be performed by Iris, and will pay Iris in accordance to Schedule-C of the contract.

"The client shall remain liable for the payments to Iris under this contract notwithstanding that it chooses not to (i) charge the consumer or end-user any sum of monies; or (ii) increase the costs or price to the consumer or end-user," said Iris.

In addition, the client has also agreed to make payments as described in Schedule-C of the contract, which provides for a minimum order of 10,000 e-Passports per annum at an agreed unit price of US$110.

"The value of the contract pursuant to minimum orders above and per unit cost of the products in Schedule C is approximately US$22 million," said Iris.

The group added that the implementation of the contract will be funded by internally generated funds and bank borrowing.

However, the breakdown of the source of funding is yet to be determined at this juncture, said Iris.

"Barring unforeseen circumstances, the board is of the opinion that the contract will contribute positively to the earnings and earnings per share of the group for the next financial year," said Iris.

Iris shares closed up 0.5 sen or 2.22% to 23 sen today, with a market capitalisation of RM469.32 million.

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