KUALA LUMPUR (June 3): Progressive Impact Corp Bhd (PICORP) has bagged a contract worth 25.32 million riyal (RM27.88 million) from the Makkah Municipality in Saudi Arabia for the provision of pest control monitoring services in Makkah.

In a bourse filing, PICORP said its wholly-owned subsidiary Saudi ASMA Environmental Solutions LLC had accepted a letter of award on June 1 for the said contract.

Saudi ASMA is engaged in the provision of public health and environmental management services.

“The contract shall be for a duration of a period of approximately 49 months commencing from the date of receiving the project site or upon any such date as specified by Makkah Municipality,” said PICORP.

Pursuant to the award, Saudi ASMA’s obligations under the contract shall involve the recruitment of manpower, procurement of vehicles, equipment, insurance and the provision of pest control monitoring services in Makkah.

Saudi ASMA is also required to submit a performance bond (5%) of the total value of the contract sum which shall be valid for the entire project period within ten days from the letter of award dated June 1. 

The award is part of the Makkah Municipality’s public health enhancement programme undertaken to maintain the quality of life of the general public in the city of Makkah.

“Saudi ASMA is currently providing similar services to Jeddah Municipality. Hence, the issuance of this award by Makkah Municipality to Saudi ASMA signifies potential growth possessed by it in the public health sector particularly with the government agencies in Saudi Arabia,” said PICORP.

It added that the award is also an indication of enhanced confidence by the government agencies, in this case, Makkah Municipality’s confidence in Saudi ASMA’s capabilities and experience in performing high quality public health management services.

The award is expected to have a positive financial effect on the group’s net assets per share for the financial years ending Dec 31, 2021 until 2025.

At the time of writing, PICORP shares were 0.5 sen or 3.03% lower at 16 sen, for a market capitalisation of RM105 million. There were 8.13 million shares traded.

The stock has fallen 27% from its recent closing peak of 22 sen on May 27. Still, year to date, it had gained 45% from 11 sen on Jan 4.