KUALA LUMPUR: Citaglobal Bhd, via its wholly owned subsidiary Citaglobal Land Sdn Bhd (CLSB), signed an engineering, procurement and construction agreement (EPC) with Inland Port Perlis Sdn Bhd (IPPSB) for the design, construction and equipping of Phase 1 of the Perlis Inland Port (PIP) for RM373.5 million.
A filing with Bursa Malaysia showed that Citaglobal is to undertake this EPC contract for 24 months, commencing from the date of site possession.
Citaglobal secured the contract via a tender exercise undertaken by IPPSB.
With the addition of the EPC contract, Citaglobal's existing order book as of 30 June 2022 almost doubles from RM381 million to approximately RM755 million.
This contract is expected to contribute positively to the company's future earnings and net assets per share for the financial years ending 31 December 2022, 31 December 2023 and 31 December 2024.
"This is another significant milestone for Citaglobal and a testament to the company's ability to secure high-value projects.
"Citaglobal is now on solid footing fundamentally, after a period of consolidation and streamlining of its businesses and operations," Citaglobal executive chairman and president Tan Sri Dr Mohamad Norza Zakaria said.
"While we aim to execute our order book as efficiently as possible, our overall vision and focus are to strengthen further the company's expertise in construction, telecommunications and renewable energy. Citaglobal is here to make its mark," he said.
For some background, IPPSB is the master developer for the Perlis Inland Port development on a 500.28-acre plot.
PIP is part of the key development plan by Perlis state to improve transportation infrastructure in that area for an inland port terminal to handle loading, unloading, and re-transporting cargo containers between Malaysia and Thailand.
This is part of the overall development currently being developed by the Perlis state and the Northern Corridor Implementation Authority (NCIA).
Citaglobal has earned a solid track record with NCIA via the ongoing Kedah Rubber City Phase 1 project in Kuala Nerang, Kedah.
Citaglobal does not foresee any exceptional risk factors other than the normal operational risks associated with the EPC contract and will take the necessary steps to mitigate those risks as and when it occurs.