(MENAFN- Iraq Business News)
By John Lee.
Malaysia's Pestech International , through its joint venture with China Energy Engineering Group Tianjin Electric Power Construction Co Ltd (TEPC) , has won a contract is for the completion of the Electricity Sector Reconstruction Project Phase (III), Lot 1-Construction, comprising of four 132-kilovolt Gas Insulated Switchgear (GIS) substations in Baghdad.
The contract value is approximately US$82 million.
Full statement from Pestech:
The Board of Directors of PESTECH ("Board") wishes to announce that PESTECH SDN. BHD. ("PSB") through the unincorporated joint venture between PSB and CHINA ENERGY ENGINEERING GROUP TIANJIN ELECTRIC POWER CONSTRUCTION CO., LTD. ("TEPC") (hereinafter referred to as "TEPC PESTECH JV") had on 30 May 2023, received the consent for an announcement for the Contract Agreement executed between the MINISTRY OF ELECTRICITY ("MOE") of the Republic of Iraq and TEPC PESTECH JV in relation to the acceptance of bid for the execution and completion of the works known as Electricity Sector Reconstruction Project Phase (III), Lot 1-Construction of Four 132kV GIS Substations IFB No: IQP24-MOE-LOT1, Loan Agreement No.: IQ-P24 ("Project").
The lumpsum contract price of the Project is United States Dollars Eighty One Million Seven Hundred Seventy Thousand Two Hundred and Eighteen only (USD81,770,218.00). TEPC PESTECH JV shall pay all taxes, duties and fees required to be paid on its own.
The scope of this project is to design, manufacture, test, deliver, install, pre-commission and commission the PROJECT, which includes four 132/33/11kV, 3 x 63MVA, Gas Insulated Switchgear ("GIS") Substations in Baghdad.
The Government of the Republic of Iraq has received a loan from the Japan International Cooperation Agency ("JICA") towards the cost and payment of Electricity Sector Reconstruction Project-Phase 3 under the contract for Construction of Four 132kV GIS Substations (LOT1).
In the TEPC PESTECH JV arrangement, both parties have agreed to the following scope of works allocation:-
TEPC shall be responsible for:
Overall project leader; Procurement, supply and transportation of part of the major equipment and material; Construction including but not limit to Civil and architectural works; Onshore activities and relevant arrangement that are required for the execution of the Project, except those specified as scope of PSB; Installation, and assisting PSB for the testing and commissioning activities; and Other responsibilities of engineering, procurement, commissioning ("EPC") general contractor which is not in the scope of PSB.
PSB shall be responsible for:
Project management responsibility; Substation design, engineering and procurement, supply, transportation of part of the major equipment, including but not limited to, power transformers, 132kV GIS, medium voltage/ low voltage panels, protection and control systems, and other auxiliary systems; Onshore delivery of the major equipment and material procured by PSB; Main responsibility for the overall testing and commissioning of the Project.
The commencement date shall be the date at which the following conditions precedent have all been fulfilled and the instruction to commence the works is received by TEPC PESTECH JV:
Execution of the Contract Agreement, and if required, procurement of the approval of the Contract Agreement by relevant authorities of the Republic of Iraq; Delivery to TEPC PESTECH JV of reasonable evidence of the MOE's financial arrangements; Effective access to and possession of the site given to TEPC PESTECH JV together with such permission(s) as required; and Receipt by TEPC PESTECH JV of the advance payment provided that the corresponding bank guarantee has been delivered by TEPC PESTECH JV.
TEPC PESTECH JV shall complete the Project within the period of eighteen (18) months from the date of commencement of works.
The Project will contribute positively towards the revenue and earnings of PESTECH in accordance to the stage of project progress to be recognised in the financial years ending 30 June 2024 to 30 June 2025.
PESTECH does not foresee any exceptional risk other than the normal operational risk associated with the Project such as availability and changes in the price of materials and equipment. The Company will take necessary steps to mitigate the risks as and when it occurs.
None of the Directors and/or Major Shareholders and/or persons connected to them, has any interest, direct or indirect in the Project.
The Board is of the opinion that the Project is in the best interest of the Company.
This announcement is dated 30 May 2023.
(Source: Bursa Malaysia)