This article first appeared in The Edge Financial Daily on September 26, 2018

KUALA LUMPUR: Pestech International Bhd has bagged a RM399 million subcontract from Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd to undertake engineering, procurement, construction and maintenance works relating to the electrification system for the electrified double track from Gemas to Johor Baru.

In a filing with Bursa Malaysia yesterday, Pestech said its wholly-owned subsidiary Pestech Technology Sdn Bhd had accepted a letter of award from Syarikat Pembenaan Yeoh Tiong Lay, under a consortium between SIPP Rail Sdn Bhd and Syarikat Pembenaan Yeoh Tiong Lay, appointing Pestech Technology as subcontractor for the proposed project.

“The establishment of electrified double track from Gemas to Johor Baru is the final stretch of West Coast KTM Bhd line to be double-tracked and electrified. The entire project involves the construction of 197km of double tracks, stations, electric trains, depots, land viaduct, bridges, and electrification, signalling and communication systems,” it added.

The date for completion of the project is April 1, 2021.

“The project will contribute positively towards the revenue and earnings of Pestech in accordance with the stages of project progress to be recognised in the financial years ending June 30, 2019 to 2020 and is expected to contribute positively to the future earnings and net asset per share of the group,” said Pestech.