Pestech’s JV unit clinches RM34.8 mil contract from TNB in Johor

KUALA LUMPUR (April 20): Pestech International Bhd said its unit has won an asset replacement and rehabilitation contract worth RM34.86 million from Tenaga Nasional Bhd in Cahaya Baru, Pasir Gudang, Johor.

The electrical power technology group said it will focus primarily on the replacement of equipment such as busbar disconnectors, feeder disconnectors with earth switches, circuit breakers, current transformers, capacitor voltage transformers, surge arresters and marshalling kiosks, and digital relay panel.

“The refurbished main intake substation will enhance the reliability and efficiency of power supply to the Cahaya Baru area in Johor,” the group added in a filing with Bursa Malaysia.

Pestech said the contract was awarded to a joint venture between its wholly-owned subsidiary Pestech Sdn Bhd (PSB) and Mega Linear Sdn Bhd (MLSB).

PSB will be responsible for the project management, design, and suppply of equipment, transformer, switchyard materials, control and protection panels, as well as site supervision and civil works.

MLSB, a contractor with relevant experience in TNB's turkey projects, will meanwhile be responsible for the construction management, supply of construction materials and installation, and testing and commissioning of electrical equipment.

Pestyech said the project, which is expected to be completed within 900 days, will contribute positively towards its earnings for the financial year ending June 30, 2023 (FY2023) to FY2026.

Pestech’s share price rose 2% or half a sen to close at 25.5 sen on Thursday (April 20), giving the group a market value of RM253.02 million. Year to date, the stock has fallen by 17.74%.