Annum partners Greentech IOT for RM62.25mil Sarawak Water Supply subcontract works

KUALA LUMPUR: Annum Bhd's indirect wholly owned subsidiary Annum EPCC Sdn Bhd has entered into a collaboration with Greentech IOT Technology Sdn Bhd to undertake subcontract works for the Sarawak Water Supply Grid Programme amounting to RM62.25mil.

In a filing with Bursa Malaysia, it said the works were in relation to the provision of pipelines from Salim Water Treatment Plant, Sibu Water Board, to Kanowit Sibu Division; a proposed Durin booster station; a proposed elevated tank at Bukong Jagoi junction; refurbishment of the existing Kanowit Reservoir at Lipus Road junction; piling works; and mechanical and electrical works for the Sarawak Water Supply Grid Programme.

Under the terms of the agreement, Annum EPCC shall be entitled to 50% of the net profit less any turnover tax, value-added tax, sales tax, withholding tax or any other tax payable.

Greentech will be entitled to 50% of the net profit.

It said the agreement will be effective from the date of its execution until the works are practically completed.

"The Collaboration represents a strategic opportunity for the Company to participate in governmental related projects which would enhance the construction portfolio of the Company and strengthen its position as a construction player in the construction industry.

"This would then enable the Company to be more competitive in the construction industry and this would support the Group’s bid and/or tender for future construction and project management projects," said Annum.

It added that the collaboration is also expected to provide additional revenue stream to enhance the group's earnings base, which in turn is expected to improve the company’s financial performance and the shareholders’ value.

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