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Central Global bags RM101m contract to upgrade water supply system in Sabah

posted on 16 April, 2021

KUALA LUMPUR (April 16): Central Global Bhd (CGB) said its unit has secured a contract worth RM100.54 million to upgrade the water supply system in Lahad Datu, Sabah, known as 'Projek Menaiktaraf Sistem Bekalan Air Di Lahad Datu Fasa 1'.

Its wholly-owned subsidiary Proventus Bina Sdn Bhd (PBSB) accepted a letter of award from RYRT International Sdn Bhd today, said the group in a bourse filing.

According to the group, the scope of works encompasses the supply of labour, materials, machinery and equipment relating to the upgrading of water supply infrastructure which connects Kg Belacon to the water treatment plant located at Jalan Dam, and connecting to the main water reservoir at Lahad Datu.

The contract shall commence on April 28, 2021 and will be completed on June 24, 2023, the group said.

CGB said the contract will further increase and enhance the existing order book of the group, adding that it is expected to provide a steady stream of revenue for the company over the next two years.

“The contract will have no effect on the share capital of the company but it is expected to contribute positively to the earnings and net assets per share of the group for the financial years ending 2021 to 2022,” the group added.

At market close, CGB was 15 sen or 7.28% lower at RM1.91, valuing the group at RM171.9 million.

Source: The Edge Markets

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