Malaysia's Pestech Unit to Build Cambodia Power System

A unit of Malaysia's Pestech International Bhd will develop the 230-kilovolt Kampong Cham-Kratie transmission system project in Cambodia, it said on Wednesday, after completing all relevant agreements.

To be developed on a build-operate-transfer basis, the project marks Pestech's debut as an independent power transmitter on a concession basis.

"The project will have no material effect on the revenue and earnings of Pestech for the financial period ending June 30, 2015, but is expected to contribute positively to the future earnings and net asset per share of the company," the company said in stock exchange filing.

The cost of developing the project amounts to $92.21 million, which commences on Wednesday and is to be completed by Nov 30, 2017, the filing showed.

The total collection and charges will amount to $437.5 million over the course of the 25-year concession, based on Reuters calculations.

Reporting by Yantoultra Ngu