NWP’s indirect subsidiary, NOOA Marine, has entered into a contract agreement with Gezhouba Engineering, to participate in the marine sand mining and transportation project in Melaka.
The marine sand mining and transportation project is for a two-year period and is worth RM36 million.
The service period is allowed to be extended for two years with the consent of both parties three months before the expiration of the first 2-years service period.
KUALA LUMPUR, 7 APRIL 2023 – NWP Holdings Bhd (KLSE: 5025) ("NWP" or "Company" or "Group") has secured a massive two-year contract valued at RM36 million for a marine sand mining and transportation project in Melaka, in collaboration with Gezhouba Engineering (Malaysia) Sdn Bhd ("Gezhouba Engineering") via its indirect subsidiary, NOOA Marine Sdn Bhd ("NOOA Marine").
Gezhouba Engineering, established in Malaysia on October 13, 2014, is a wholly-owned subsidiary of China Gezhouba Group International Engineering Co, which in turn is a wholly-owned subsidiary of China Gezhouba Group Co., Ltd, a listed company within Energy China. It has a strong track record in the construction industry.
Located in the Malacca Sea Area, the project will involve NOOA Marine deploying a fleet of engineering vessels as required for mining tasks. These vessels will enter the designated sea area to extract marine sand and transport it to the specified location directed by Gezhouba Engineering, where it will be discharged or unloaded from the barge.
Throughout the project management and implementation process, NOOA Marine will adhere to all management directives, arrangements, and instructions provided by Gezhouba Engineering.
As stated in a filing with Bursa Malaysia, the project's service period spans two years, with the specific commencement date to be determined by Gezhouba Engineering's notice. The service period can be extended for an additional two years with mutual consent from both parties, three months before the initial two-year term expires. However, the total service period must not exceed four years.
It also added that the estimated value of the two-year contract is RM36 million, while the four-year contract is tentatively set at RM72 million. The contract operates on a fixed unit price basis, with the unit price encompassing all work and expenses related to project implementation.
The management of NWP Holdings Bhd is excited about the prospects of this new project and its potential impact on the Group's financial performance.
NWP Non-Executive Chairman Dato’ Tan Lik Houe, said, “We are thrilled to embark on this significant marine sand mining and transportation project in collaboration with Gezhouba Engineering. This venture represents a remarkable milestone for our Group and aligns with our strategic objectives to diversify our business and strengthen our position in the market."
Similarly, NWP Holdings Berhad Executive Director Ms Tan Jyy Yeen, also shared the enthusiasm of Dato’ Tan.
She said, “We believe this project will greatly contribute to the growth and expansion of our revenue streams, ultimately boosting the Group's overall financial performance. As we navigate the challenges of the global economy, this collaboration signifies our commitment to seeking new opportunities, fostering innovation, and delivering long-term value to our shareholders."
Both Dato Tan and Ms Tan are confident that the project will also boost NWP Group’s track record and is in line with the Group’s objective to diversify its business operations.
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