KUALA LUMPUR (Nov 22): Pestech International Bhd said its unit has secured a contract from the National Grid Corp of the Philippines (NGCP) to upgrade the South Luzon substations worth around RM156.91 million.

The contract, secured by Pestech Sdn Bhd from NGCP, comprises an offshore portion worth US$23.46 million (RM98.18 million), while the onshore portion is valued at 710.76 million pesos (RM58.72 million).

Pestech said the contract underlines its full responsibilities to design and build according to contract requirements, involving seven independent substation components.

"The project aims to cater [to] the load growth and provide N-1 contingency to various substations for NGCP in the South Luzon Region.

"This involves capacity additions, replacement of old and obsolete substation equipment and reconfiguration of the existing substations to ensure reliability and flexibility of the electrical network for achieving sustainable growth of NGCP's power network," Pestech said.

Pestech said the commencement date will be determined by the client later, but said that the project will contribute in its financial years ending June 30, 2022 to 2023.

Shares of Pestech closed unchanged at RM1, giving the construction engineering group a market capitalisation of RM764.29 million.