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Aarsleff-Salcon JV has received a conditional letter of acceptance dated 9 April 2008 from National Water Supply and Drainage Board, Sri Lanka for the Design and Construction of Kelani Right Bank 40 MGD Water Treatment Plant Project in Sri Lanka ("Project").
The contract value for the Project is Euro 44.61 million (approximately RM221 million) and the construction period is 725 days.
The Project shall commence within 42 days from the signing of Loan Agreement between the Nordea Bank Denmark A/S and the Ministry of Finance of the Government of Sri Lanka, which is a principal condition relating to the Project.
The Project will be jointly undertaken by Per Aarsleff A/S, Denmark and Salcon Engineering Berhad ("SEB") on the basis of 60:40 respectively. SEB is a wholly-owned subsidiary of the Company.
The Project will not have a significant effect on the earnings or net assets of Salcon Group for the financial year ending 31 December 2008, and the share capital of the Company.
The risks factors for the Project include but not limited to those associated with changes in economic, political and regulatory conditions in Sri Lanka such as changes to government policies and administration, taxes and exchange control regulations.
None of the Directors and/or major shareholders of the Company, or persons connected with them have any interest, direct or indirect in the Project.
This announcement is dated 11 April 2008. |
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