KUALA LUMPUR: Pestech International Bhd
's unit has secured two contracts from Tenaga Nasional Bhd
(TNB) for setting up a power plant in Kedah and the laying of an underground cable in Kuala Lumpur worth a combined sum of RM280.89mil.
In a stock exchange filing, the group said the wholly owned subsidiary, Pestech Sdn Bhd, received the RM168.39mil contract for the PMU Junjung 500/275kV power plant.
According to the statement, the facility will support heavy power transfer from Perak to Prai to counteract the power deficit in northern Peninsular Malaysia due to plant retirement.
"The reinforcement will strengthen the grid network and improve security of supply in the future," it said.
In a separate filing, Pestech said its joint venture with Pembinaan Tajri Sdn Bhd received a RM112.5mil contract from TNB for the laying of the XLPE underground cable from PMU prince Court to PMU Ampang.
"The cable route will run through central Kuala Lumpur from Prince Court area to Jalan Taman U-Thant and connecting to Jalan Ampang towards Jelatek area.
"The cable system is to deliver a minimum of 500MVA power for each 275kV cable circuit under this Project; considering full load operation of all cable circuits inclusive of the neighbourhood power cable systems," it said.
The power plant and underground cable contracts will run for 912 and 730 days from the dates of commencement respectively.
The contracts are expected to contribute positively to the revenue and earnings of Pestech in the financial years ending June 30, 2019 to June 30, 2021.