This article first appeared in The Edge Financial Daily on December 20, 2017

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

In its Bursa Malaysia 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 undertakes to design, engineer, manufacture, instal, test and commission the substations and transmission line.

The 115kV double-circuit transmission line will run about 75km to 78km from Oddor Meanchey to Siem Reap. The substations consist of a 115/22kV variety in Oddor Meanchey, and a 230/22kV substation in Bek Chan in the Porsenchey district.

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

The Oddor Meanchey transmission line and substation is 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 group’s revenue and earnings for the financial year ending June 30, 2018, but is expected to contribute positively to the group’s future earnings and net assets per share,” said Pestech.