1. INTRODUCTION

The Board of Directors of Central Global Berhad (“the Company”) wishes to announce that the Company’s wholly-owned subsidiary, Proventus Bina Sdn. Bhd. (“PBSB”), had on 17 October 2023 accepted a letter of award from the third-party main contractor, Mahiribu Sdn. Bhd. in respect of the subcontract works such as supplying of plant, machinery, labour and material required for the construction and completion of the “Projek Bekalan Air Luar Bandar (BALB) Sistem Retikulasi Tahun 2018/2019 Negeri Sabah Bahagian Lahad Datu” (“the Contract”). The Contract is for a sum of Ringgit Malaysia Fifteen Million Two Hundred Forty-Two Thousand (RM15,242,000.00) only. The Contract is for a period commencing on 18 October 2023 and ending on 16 April 2025. 

2. SCOPE OF THE CONTRACT

The subcontract work shall comprise but not be limited to the following:- 

(i) To construct and complete ‘Projek Bekalan Air Luar Bandar (BALB) Sistem Retikulasi Tahun 2018/2019 Negeri Sabah Bahagian Lahad Datu’ namely site clearing, earthworks, piling works, piping works, reservoir, pumping system and any provisional sum items as instructed by the employer, Kementerian Kemajuan Desa Dan Wilayah (KKDW).

(ii) To provide, install, dismantle and remove of all temporary structures, machines and equipment, and scaffolding for successful completion of works.

(iii) To provide, maintain and remove all preliminary items such as vehicles, office equipment, office, stores, and all other items as specified in the Bill of Quantities.

3. RATIONALE

The acceptance of the Contract is in the ordinary course of business of PBSB and will enhance the existing order book and is expected to provide a steady stream of revenue to the Group over the next one and a half years.

4. RISK

Other than risks that may arise from the uncertainties of the Covid-19 pandemic, there are no foreseeable significant risks other than normal operational risks associated with the project during the project period.

5. FINANCIAL EFFECT

The Contract will have no effect on the share capital of the Company but is expected to contribute positively to the earnings and net assets per share of the Group for the financial years ending 2023 to 2025.

6. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the directors and/or major shareholders of the Company or persons connected with them have any interest, direct or indirect, in the Contract.

This announcement is dated 17 October 2023.