HSS Engineers Berhad (HEB) announced that its associate SMHB Sdn Bhd has secured a contract from Pengurusan Aset Air Berhad (PAAB) for engineering consulting services involving the proposed upgrading of water supply system in Kuantan, Pekan and Rompin (Op 4-22 – Phase 1) districts worth around RM9.5 million.
In a Bursa filing today (Feb 14), the engineering and project management services provider said today SMHB had accepted a Letter of Acceptance from PAAB, a wholly-owned company of Ministry of Finance (Incorporated) (MOF Inc) for the provision of the services.
“The services by SMHB shall include but not limited to detailed design and construction supervision,” it added.
HEB said the service contract will commence on 19 February 2024 and estimated to be completed July 2027.
“The services are expected to contribute positively to the revenue, earnings and net assets of HEB Group for financial years ending 31 December 2024 to 31 December 2027.
“It will not have any impact on the share capital and/or shareholding structure of HEB and are expected to be funded via internally generated funds and/or external borrowings.”
The group said the risk factors affecting services include, but not limited to execution risks, such as dependency on the schedule of implementation and progress for which SMHB has been appointed to provide the services.
“Nonetheless, HEB Group, has, throughout the years, established its track record and expertise in undertaking such projects. As such, the Board of Directors believes that HEB Group is able to mitigate the aforesaid risk factors,” it added.
