KUALA LUMPUR: Vizione Holdings Bhd’s joint-venture (JV) company with Pembinaan Maju Cemerlang Sdn Bhd (PMCSB) has been shortlisted by the Sabah State Water Department (JANS) to design and build the Papar dam in Sabah.

Vizione told the stock exchange yesterday that the JVco between its wholly-owned Wira Syukur (M) Sdn Bhd and PMCSB accepted the letter of intent (LOI) from JANS for the development and execution of the dam and associated water supply work in Sabah.

“The LOI informs that Wira Syukur and PMCSB (the JV company) has been shortlisted and requested to proceed to discuss with JANS on the terms and conditions to design and build the project in Sabah. Upon successful completion of the project, the project will have the capacity to supply 1,000 million litres per day of water supply and generation of 100mw electricity,” read the filing.

Vizione said the dam’s capacity can provide the people of Sabah with a strategic water resource that can supply the water needs of Kota Kinabalu and the west coast of Sabah for the next 50 years.

The successful execution of the project will enlarge the group’s order book and is expected to provide a steady stream of revenue for the group, the property and construction player said.

“The LOI is not expected to have any major material effects on the NA (net assets) and gearing of the group for the financial year ending May 31, 2020.

“Barring any unforeseen circumstances, this LOI is expected to contribute positively to the earnings and earnings per share of the group as the earnings would be realised in stages over the tenure of the sub-contract based on the progress of the project. Any profits attributable to the group would be realised in stages over the tenure of the sub-contract based on the progress of the subcontract,” it added.

The Papar dam project, which reportedly will cost RM2 billion to build, has seen objections from environmentalists.