PETALING JAYA: Prinsiptek Corp Bhd is partnering with QSE Construction Sdn Bhd to develop the Langat 2 water treatment plant and water reticulation system in Selangor and Kuala Lumpur.
Prinsiptek told Bursa Malaysia that its indirect wholly owned subsidiary Esa Pile Sdn Bhd had on Sep 19 entered into a joint venture agreement (JVA) with QSE Construction for the project, which was awarded by Pengurusan Aset Air Bhd in a letter of award dated June 25, 2019.
The contract sum of the project is estimated to be about RM24.90 million, whereby Prinsiptek is entitled to 92.5% of the contract sum.
QSE will be the contract manager for the project, while Esa Pile is slated to be the contractor and project manager of the project.
Prinsiptek said the JVA is for a period of 24 months and will commence operations immediately.
The estimated total cost of the project is up to 90% of the contract sum, which is expected to be incurred over the project period.
Prinsiptek will fund the project through internally generated funds and/or bank borrowings.
It said the project is an opportunity for the group to capitalise on its experience and expertise in construction projects, which is also in line with its strategy to develop and grow its construction segment.
At the midday break, Prinsiptek’s share price was down 3.4% to 14 sen on 340,600 shares done.