1. INTRODUCTION

HEB wishes to announce that on 14th February 2023, HSS Integrated Sdn. Bhd. (“HSSI”), an associate of HEB, has entered into a Contract Agreement with Bangladesh Railway (“the Client”), appointing OCG-EGIS-HSSI JV (“JV”), a Joint Venture comprising Oriental Consultants Global Co., Ltd., Japan (Lead Partner) (“OCG”), EGIS RAIL S. A., France (JV Member) (“EGIS”), and HSSI, Malaysia (JV Member) to provide consulting services for the Asian Development Bank (“ADB”) funded Railway Connectivity Improvement Preparatory Facility Project (ADB Loan No.L6030 BAN)(“Project”).

2. ESTIMATED PROJECT VALUE

Estimated Project Value attributable to HSSI      :          USD833,400.00 (equivalent to approximately RM3,625,290.00 comprising of USD660,000.00 (equivalent to approximately RM2,871,000.00) (Professional Fee) + USD173,400.00 (equivalent to approximately RM754,290.00) (Reimbursable Expenses), based on the exchange rate of USD1.00: RM4.35 as at 14 February 2023)

Commencement                                                   :         14th February 2023

Estimated Project Duration                                   :         30 months

HSSI’s scope of services within the JV, shall include preparation of feasibility studies, detailed designs and cost estimates and preparation of business plans for Bangladesh Railway.

Pursuant to the exclusive teaming arrangement between HSSI and HSS Engineering Sdn. Bhd. (“HSSE”), a wholly-owned subsidiary of HEB, HSSI and HSSE will be collaborating exclusively to execute and complete the Services. 

3. FINANCIAL EFFECTS

The Project are expected to contribute positively to the revenue, earnings and net assets of HEB Group for the financial years ending 31 December 2023 until 2026.  

The Project will not have any impact on the share capital and/or shareholding structure of HEB.

The Project are expected to be funded via internally generated funds and/or external borrowings.

4. RISK FACTORS

The risk factors affecting the Project include, but not limited to execution risks, such as dependency on the schedule of implementation and progress of the Project for which HSSI 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.

5. APPROVAL REQUIRED

The Project, being part of the ordinary course of business of HEB Group, is not subject to the approval of shareholders of HEB or any relevant authorities.

6. DIRECTORS’ AND/OR MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors and/ or Major Shareholders of HEB and persons connected to them has any interest, direct or indirect, in the Project or Services.

7. DIRECTORS’ STATEMENT

The Board of Directors, after considering all the relevant factors, is of the opinion that the acceptance of the Contract is in the best interest of HEB Group and is a significant stepping stone for HEB group and it is in line with the Group’s overall growth strategy, embarking into the data centre sector, complementing our core expertise in Transportation and Water Sector.

This announcement is dated 15th February 2023.