This article first appeared in The Edge Financial Daily on September 20, 2019

KUALA LUMPUR: Prinsiptek Corp Bhd has teamed up with QSE Construction Sdn Bhd to jointly develop the Langat 2 water treatment plant and water reticulation system in Selangor and Kuala Lumpur.

Prinsiptek said the joint venture (JV) is an opportunity for the group to capitalise on its experience and expertise in construction projects, which is in line with its strategy to develop and grow its construction segment.

In a bourse filing yesterday, Prinsiptek said its indirect wholly-owned subsidiary Esa Pile Sdn Bhd had entered into a JV agreement to jointly undertake the project, which was awarded by Pengurusan Aset Air Bhd in June.

Under the JV, Prinsiptek is entitled to 92.5% of the contract value of RM24.9 million. Additionally, QSE will be the contract manager for the project, while Esa is slated to be the contractor and project manager.

The JV agreement will be for 24 months and will commence operations immediately.

“The estimated total cost of the project is expected to be up to 90% of the contract sum, which is expected to be incurred over the project period,” Prinsiptek said, adding that it will fund the project through internal funds and/or bank borrowings.

Prinsiptek believes that the JV would enhance the group’s growth potential.