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OTHERS SOLARVEST HOLDINGS BERHAD - ENGINEERING, PROCUREMENT, CONSTRUCTION, INSTALLATION, TESTING AND COMMISSIONING AGREEMENT BETWEEN NE SURIA SATU SDN. BHD. AND SOLARVEST ENERGY SDN. BHD.
SOLARVEST HOLDINGS BERHAD

Type Announcement
Subject OTHERS
Description SOLARVEST HOLDINGS BERHAD
- ENGINEERING, PROCUREMENT, CONSTRUCTION, INSTALLATION, TESTING AND COMMISSIONING AGREEMENT BETWEEN NE SURIA SATU SDN. BHD. AND SOLARVEST ENERGY SDN. BHD.
1. INTRODUCTION

The Board of Directors of the Solarvest Holdings Berhad ("Solarvest" or "the Company") wishes to announce that Solarvest Energy Sdn. Bhd., a wholly-owned subsidiary of the Company (“Solarvest Energy”) has entered into an Engineering, Procurement, Construction, Installation, Testing and Commissioning Agreement (“the Agreement”) with NE Suria Satu Sdn. Bhd. (“NESS”) for the provision of engineering, procurement, construction, installation, testing and commissioning of the solar photovoltaic (“PV”) power generation system for fifteen (15) identified stores of a hypermarket chain in Malaysia (“Project”).

2. INFORMATION ON NESS

The principal business activity of NESS is developing, constructing, owning, maintaining, managing and operating solar PV power generation systems, among others. The major shareholders of NESS are PETRONAS Power Sdn. Bhd. and NEFIN Energy (Malaysia) Sdn. Bhd.

PETRONAS Power Sdn. Bhd. is a wholly-owned subsidiary of Petroliam Nasional Berhad (PETRONAS) whereas NEFIN Energy (Malaysia) Sdn. Bhd. is a subsidiary of NEFIN Group, a bespoke solar developer and asset management company with a focus on solar PV.

3. SALIENT TERMS OF THE AGREEMENT

(i) Solarvest Energy will be appointed as the contractor to undertake the Project for the delivery of the rooftop solar PV power generation system (“System”) at the fifteen (15) identified stores of a hypermarket chain in Malaysia with the cumulative system capacity of approximately 10,614 kilowatt peaks (kWp).

(ii) Solarvest Energy shall provide, on a turnkey basis, all professional design and engineering services, equipment procurement, construction, installation, testing and commissioning, supervision, labor, materials, equipment, tools, manufacturing equipment and machinery, utilities, transportation and procurement of all relevant permits and/or licences (where necessary) for the System in accordance with the Agreement.

(iii) Upon substantial completion with respect to each System, Solarvest Energy is required to test the System, including all components thereof in accordance with the requirements of the Agreement. Solarvest Energy shall provide warranty and performance guarantee for a period of 24 months that the work shall conform to the specification on the substantial completion date and shall be free from defects in materials and workmanship under normal operating conditions.

(iv) The contract price of the Project is valued at RM29.2 million and is payable in accordance with the progress payment schedule based on the completion milestone of the Project.

(v) The Project shall be completed as per the Project Schedule agreed by NESS upon the issuance of Notice To Proceed for individual site by NESS to Solarvest Energy.

4. FINANCIAL EFFECT

The Project is expected to contribute positively to the earnings and net assets of Solarvest for the financial year ending 31 March 2021.

5. RISK FACTORS

The Company does not foresee any exceptional risk other than the normal operational risks associated with the Project. Nevertheless, the Company will take the necessary steps to mitigate the risks as and when they occur.

6. DIRECTORS' AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors and/or major shareholders of Solarvest or persons connected with them has any interests, whether direct or indirect, in the Project.

7. STATEMENT BY DIRECTORS

The Board of Directors of the Company is of the opinion that the Project is in the ordinary course of business of Solarvest Group and is in the best interest of the Solarvest.

This announcement is dated 23 April 2020.

Announcement Info
Company Name SOLARVEST HOLDINGS BERHAD
Stock Name SLVEST
Date Announced 23 Apr 2020
Category General Announcement for PLC
Reference Number GA1-22042020-00097