KUALA LUMPUR (Dec 19): Pestech International Bhd announced today that its wholly-owned Cambodian unit has executed a contract agreement worth US$26 million (RM106.11 million), to develop two substations and double-circuit transmission line in Cambodia.

In a bourse filing, Pestech said its unit, Pestech Cambodia Ltd (PCL) completed the execution of the agreement with Schneitec Co Ltd yesterday for the project. Under the deal, PCL will undertake to design, engineer, manufacture, install, test and commission the substations and transmission line.

The transmission line is a 115kV double circuit transmission line that will run from about 75km-78km from Oddor Meanchey to Siem Reap, while the substations are: one 115/22kV substation in Oddor Meanchey, and one 230/22kV substation in Bek Chan (Porsenchey).

The project is expected to commence within one month from the date of the agreement.

The Oddor Meanchey transmission line and substation are expected to be completed in 18 months, while the Bek Chan substation should be completed in 24 months.

"The agreement will have no material effect on the revenue and earnings of the group for the financial year ending June 30, 2018 (FY18), but is expected to contribute positively to the future earnings and net assets per share of the group," read the filing.

Pestech shares slid one sen or 0.61% to close at RM1.63, valuing the company at RM1.24 billion. In the past 12 months, the stock has appreciated some 3.2%.