KUALA LUMPUR: Progressive Impact Corporation Bhd's (Picorp) subsidiary has secured a "material" contract from Kidana Development Company, Saudi Arabia to supply underground waste compactors.
Kidana is a company dedicated to developing real estate in the Holy Sites area and acts as the executive arm of the Royal Commission within its geographical scope, aiming to enhance infrastructure, public facilities, and services for Muslim pilgrims during Hajj rituals.
Picorp told Bursa Malaysia Securities Bhd in a filing, a non-disclosure agreement was signed between Saudi ASMA Environmental Solutions LLC and Kidana and the total value of the contract sum could not be disclosed.
It is however material and will have a positive impact on the group's net assets for the financial year ending Dec 31, 2024.
The contract spans more than five months from March 25, 2024.
Under the terms of the contract, Saudi ASMA is tasked with procuring, installing, commissioning, and maintaining underground waste compactors in the Mina area of Makkah, primarily for pilgrims' use during their visit.
Picorp also noted that Saudi ASMA must furnish a performance bond equivalent to 5.0 per cent of the total contract value within ten days of receiving the letter of award, which must remain valid for the project's entire duration.
Picorp emphasised that the contract aligns with Saudi ASMA's current services, focusing on improving public health and environmental quality.
It presents opportunities for Saudi ASMA to expand its services into waste management, contributing to Saudi Arabia's initiatives to enhance facilities and services for Muslim pilgrims and accommodate more pilgrims during Hajj rituals.