KUALA LUMPUR: Nestcon Bhd's wholly-owned subsidiary Nestcon Infra Sdn Bhd (NISB) had accepted the letter of award (LOA) from Sino Natural Resources Malaysia Sdn Bhd to provide site clearance, earthwork and ancillary works on CBS 2, Block 3, Sungai Bakau, Balingian, Mukah, Sarawak.
According to its Bursa filing, the contract sum for the project totalled to RM129.6 million.
"The LoA shall be in force for an initial term of 24 months effective from Oct 13, 2022 to Oct 12, 2024, with an option to extend for an additional period of 24 months upon written notice not later than 30 days prior to the expiration of the initial term," it said.
Both companies will sign a formal contract along with the necessary supporting documents within 21 days from the acknowledgement of the LoA.
The project is expected to contribute positively to Nestcon's earnings for the financial year ending Dec 31, 2022, and throughout the duration of the project.