Pestech bags RM75mil rail job

In a filing with Bursa Malaysia, Country View said that the acquisition

KUALA LUMPUR: A consortium, in which Pestech International Bhd is a partner, has secured the signalling systems contract for the Gemas-Johor Baru electrified double track project.

The turnkey engineering, procurement, construction and maintenance contract is worth RM339mil. Pestech’s portion of the contract is RM75mil, the company said in a filing with Bursa Malaysia today.

The contract also includes optional items worth RM19.77mil.

“The optional items, if exercised, will be allocated between the consortium parties within the period of the works,” it said.

The date for completion of the project is on Apr 1, 2021, it said.

It is expected to contribute positively towards the revenue and earnings of Pestech in accordance to the stages of project progress to be recognized in the financial years ending June 30, 2019 to June 30, 2020.

The company said it 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.

Pestech added it will take necessary steps to mitigate the risks as and when it occurs.