NWP has entered into a Contract Agreement with Gezhouba Engineering (Malaysia) Sdn. Bhd to participate in the “Marine
Sand Mining and Transportation Project in Malacca Malaysia for a 2-year contract sum of approximately RM36 million.
NWP subsidiary, NOOA Marine is principally involved in dredging, excavating, and transporting marine sand, trading sand and other general items, and chartering of vessels and other ancillary services. While Gezhouba Engineering is a wholly owned subsidiary of China Gezhouba Group Co., Ltd, a listed company of Energy China. CGGC International was registered and established in Beijing, with a registered capital of 1 billion yuan and a current asset scale of 8.197 billion yuan. Gezhouba Engineering is principally involved in Construction Contract Work.
The Project is situated in the Malacca Sea Area, with a designated sea area within twelve nautical miles of the territorial sea and the eight coordinates on the boundary line of the designated sea area. The Scope of Work requires NOOA Marine to deploy a corresponding number of engineering ships according to the needs of mining tasks to enter the designated sea area to mine marine sand and transport it to the sea area designated by Gezhouba Engineering and discharge/unload the marine sand from the barge. NOOA Marine shall observe all management, arrangement, and instructions of Gezhouba Engineering for the Project during the project management and implementation process.
The service period of the Project is 2 years, and the specific commencement date will be subject to Gezhouba Engineering’s notice. The service period for the project however is allowed to be extended for 2 years with the consent of both parties three months before the expiration of the first 2-years service period. The total service period shall not exceed 4 years.
The amount of a 2-year contract is tentatively RM36 million and the 4-year contract is tentatively RM72 million. The contract is a fixed unit price contract, and the unit price of the contract should be considered to include all the work and expenses related to the implementation of the Project.
The Agreement will add to the revenue stream of NWP Group and is expected to contribute positively to the earnings of the NWP Group. The Agreement is also in line with NWP Group’s objectives to diversify its business.
