KUALA LUMPUR (Sept 19): Prinsiptek Corp Bhd (PCB)'s unit has teamed up with QSE Construction Sdn Bhd to develop the Langat 2 water treatment plant and water reticulation system in Selangor and Kuala Lumpur.

In a bourse filing, the group said its indirect wholly-owned subsidiary Esa Pile Sdn Bhd has entered into a joint venture (JV) agreement with QSE for the project.

"The JV would enable PCB Group to participate in the development of the water treatment plant and water reticulation system in Selangor and Kuala Lumpur.

"It is an opportunity for PCB Group to capitalise on its experience and expertise in construction projects, which is in line with PCB Group's strategy to develop and grow its construction segment," it said.

The project, which was awarded to PCB on June 25, 2019, is worth RM24.9 million.

PCB is entitled to 92.5% of the contract sum and will be funding the working capital for the project, while QSE will be the contract manager for the water treatment plant and water reticulation system. Meanwhile, Esa Pile is the project manager and contractor.

The JV will last for two years and is set to be completed in the third quarter of 2021 (3Q21).

While the JV is not expected to have an effect on PCB's share capital, substantial shareholder stakes, earnings per share, net assets and gearing for the financial year ending June 30, 2020 (FY20), it is expected to contribute positively to the group's future earnings and net assets per share.

Both Esa Pile and QSE will identify one person from their own respective camps to serve on the JV's management committee — with both Esa Pile and QSE serving as the lead agency when it comes to seeking, receiving and managing the JV's activities.

At the noon market break today, shares in Prinsiptek were half a sen or 3.45% lower at 14 sen, valuing the company at RM61.98 million. The counter saw 340,600 shares transacted.