KUALA LUMPUR (Dec 14): Pestech International Bhd said its 60%-owned joint venture has secured an electrical substation construction project in Entinggan, Kuching, Sarawak from Syarikat SESCO Bhd for RM109.98 million.

This is the fourth civil and engineering works project announced this year by Pestech, and its first after IJM Corp Bhd’s entrance as a 44.83% shareholder in Pestech for RM124 million or 15.5 sen per share in October.

The award “signifies that Pestech remains active and competitive in the procurement of new projects”, Pestech said, adding that it remains positive towards the overall prospect of the industry where it operates in.

The group recently suffered a series of setbacks including its contract termination in the KLIA automated people mover (APM) aerotrain project in August, and as a subcontractor in the Gemas-Johor Bahru electrified double-track rail project back in May.

It is currently in a legal tussle with a construction arm of the YTL group, which is the main contractor for the double-track rail project.

On the latest win, Pestech said the development of Entinggan Substation is expected to ensure the reliability of supply and cater for the rapid growth in the organic and industrial load in Kuching, Sarawak.

Works by the JV with Sky High Construction Sdn Bhd is expected to commence on Dec 26 for a period of 23 months. The JV received a notification of award (NOA) from SESCO on Wednesday, Pestech said.

It added that the project should contribute to the group in stages in the financial year ending Sept 30, 2024 (FY2024) and FY2025.

Pestech shares were unchanged at 28.5 sen at noon market break, giving it a market capitalisation of RM287.83 million.

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