Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 9): Pestech International Bhd secured a sub-contract signalling system works worth RM75 million for the electrified double-track project from Gemas to Johor Bahru.

In a filing with Bursa Malaysia today, Pestech said the sub-contract was awarded to an unincorporated consortium, named Ansaldo STS Pestech Consortium, which was formed between its wholly-owned subsidiary Pestech Technology Sdn Bhd and Ansaldo STS Malaysia Sdn Bhd.

Pestech said the consortium had accepted a letter of award from another consortium consisting of SIPP Rail Sdn Bhd and Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd.

The award is meant to appoint Ansaldo STS Pestech as sub-contractor for the turnkey engineering, procurement, construction and maintenance contract relating to the signalling system for the electrified double track project from Gemas to Johor Bahru.

Pestech said the fixed sub-contract price is RM339 million, including optional items worth RM19.77 million.

The optional items, if exercised, will be allocated between Ansaldo STS and Pestech Technology.

Nonetheless, Pestech said pursuant to the consortium, the total sub-contract price for the group’s portion of works is RM75 million.

“This has further built up local participation for the signalling portion of the rail electrification,” it said.

The project’s completion date will be April 1, 2021.

Pestech said the project will contribute positively to its revenue and earnings for financial years ending June 30, 2019 (FY19) and FY20.

Pestech’s share price gained three sen or 2.11% to close at RM1.45 today, giving it a market capitalisation of RM1.11 billion.

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