CITAGLOBAL WINS RM373.5 MILLION PERLIS INLAND PORT EPC CONTRACT
Contract to double Citaglobal’s order book to RM755mil
KUALA LUMPUR, 30 August 2022 — Citaglobal Berhad (formerly known as WZ Satu Berhad), via its wholly owned subsidiary Citaglobal Land Sdn Bhd (formerly known as WZS BinaRaya Sdn Bhd) has entered into an Engineering, Procurement and Construction Agreement (“EPC agreement”) with Inland Port Perlis Sdn Bhd (“IPPSB”) for the design, construction and equipping of Phase 1 of the Perlis Inland Port (PIP) with a contract sum of RM373.5 million (“EPC contract”).
A filing with Bursa Malaysia showed that Citaglobal is to undertake this EPC contract for a period of 24 months, commencing from the date of site possession.
The contract was secured by Citaglobal via a tender exercise undertaken by IPPSB. With the addition of the EPC contract, Citaglobal’s existing order book as at 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” said Tan Sri Dato’ Sri (Dr.) Mohamad Norza Zakaria, Executive Chairman & President of Citaglobal Berhad.
“While we aim to execute our order book as efficiently as possible, our overall vision and focus is to further strengthen the Company’s expertise in construction, telecommunications and renewable energy. Citaglobal is here to make its mark,” said Tan Sri Norza.
For some background, IPPSB is the master developer for the Perlis Inland Port development on a 500.28-acre land.
PIP is part of the key development plan by the state of Perlis to improve the Perlis 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 on-going Kedah Rubber City Phase 1 project in Kuala Nerang, Kedah.
Meanwhile, 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.
