The project will undertaken by the Consortium of FECL-PSB for the construction of the 230kV and 22kV underground cable
By NUR HANANI AZMAN / Pic source pestech-international.com
PESTECH International Bhd’s wholly-owned subsidiary, Pestech Sdn Bhd (PSB), under a consortium with Furukawa Electric Co Ltd (FECL) bagged a contract worth RM165.49 million in Cambodia.
It has received a notification of award from Electricite du Cambodge (EDC) for the contract in relation to the Phnom Penh City Transmission and Distribution System Expansion Project Phase 2 (I) — Package 3, Procurement of Underground Transmission and Distribution Line Works.
“The total contract is of value ¥2.21 billion (RM85.06 million) and US$19.94 million (RM80.43 million).
“This is the first 230kV underground cable work project undertaken by EDC in Cambodia, as well as Pestech’s successful venture to export extra-high-voltage underground cable design and laying capability overseas,” it said in a filing to Bursa Malaysia.
Pestech’s share price closed two sen or 1.47% lower at RM1.34 yesterday, valuing the company at RM1.02 billion.
Under the project, the scope of works to be undertaken by the Consortium of FECL and PSB shall comprise all the necessary works for the construction of the 230kV and 22kV underground cable on a turnkey basis.
“This includes the design, survey, manufacturing, testing, shipping, insurance, delivery to site, erection/installation with suitable manner, training and setting up of site work,” the company noted.
Prestech would also work on double-circuit, three-single-core per circuit, 230kV XLPE (cross-linked polyethylene) insulated underground power cable, optical-fibre cable (OFC), cable joints for power cable, cable joint for OFC, power cable outdoor/ SF6 gas-immersed sealing ends and all other associated accessories of 9km route length between expanded GS5 outdoor substation and proposed National Control Centre indoor substation.
Total 230kV XLPE cable involved is estimated at around 53.48km and total 22kV cable involved is estimated at around 19.25km.
According to Pestech, this infrastructure will be able to help enhance the reliability and dependability of the power supply network in the Phnom Penh city centre.
“The commencement date and the completion date of the project shall be decided by EDC upon contract negotiation with the consortium.
“The project will contribute positively towards the future revenue and earnings of Pestech in the financial year ending June 30, 2021,” it added.
Pestech does not foresee any exceptional risk other than the normal operational risk associated with the project such as availability and changes in the price of raw materials.
The company will take necessary steps to mitigate the risks as and when it occurs.
In a separate statement, Pestech and Energy Fiji Ltd (EFL) had mutually agreed to terminate the contract in relation to the construction of Virara-Koronubu 132kV Transmission Line (Package 1) Monopole Section and Virara-Koronubu 132kV Transmission Line (Package 2) Lattice Tower Section due to non-fulfilment of condition precedents (CPs) by both parties as set out in the contract.
“Such termination is mutually concurred on the basis that the contract has not come into effect due to non-fulfilment of the CPs and is not legally binding between the parties.
“In that respect, both EFL and Pestech waive all and any right, claim or otherwise against the other whether existing or contingent, and neither party shall have nor shall bring any claim, suit, or otherwise against the other party henceforth,” it concluded.