KUALA LUMPUR (April 6): Pestech International Bhd says its Cambodian unit has inked a US$100.21 million (RM444.59 million) construction agreement today in relation to the development of a hydro power plant in Cambodia.

Under the contract inked between Pestech (Cambodia) Ltd (PCL) and Alex Corp Co Ltd, Pestech said PCL will undertake the design, engineering, manufacturing, installation, testing and commissioning of approximately 220km of 230kV double-circuit transmission line from Stung Tatay Hydro Power Plant to Phnom Penh.

PCL will also supply, install and connect two (2) 230kV line bays at Stung Tatay hydro power plant (HPP) switchyard, it added.

“The project is expected to commence within three months from the date of the agreement and is expected to be completed within 36 months from the agreement date,” Prestech said.

Back in 2015, Prestech, through its 60%-owned subsidiary Diamond Power Ltd developed a 230kV transmission line in Cambodia — between Kampong Chom and Kratie — which had a US$92.21 million contract value. It was also given a 25-year concession to operate the line.

Pestech said the agreement is expected to contribute positively to its future earnings and net assets per share, though it will have no material effect on its revenue and earnings for the current financial year ending June 30, 2017.

Pestech shares slid two sen to RM1.64 today, for a market capitalisation of RM1.25 billion.