Introduction
HEB is pleased to announce that on 28 July 2026, SMHB Sdn Bhd [Registration No. 198001009497 (63281-X)] ("SMHB"), an associate of HEB, has accepted a Letter of Appointment for the Lead Design Consultancy (LDC) and Detailed Design Consultancy 4 (DDC4) Services Package ("Services") for the Northern Perak Water Supply Scheme and Sale of Excess Treated Water to Penang ("NPWSS" or the "Project"), issued by Gamuda Engineering Sdn Bhd [Registration No. 200001004264 (506869-K)] ("Employer").
Information on the Services
Total Contract Sum (inclusive of Service Tax): RM34,005,960.00
Commencement Date: June 2026
Estimated Completion Date: Sixty-six (66) months from the Commencement Date
SMHB's scope of services under the Services comprises lead design consultancy for NPWSS and detailed design consultancy for the water treatment plant in NPWSS which includes preliminary, pre-final and final design, tender stage support and support during the construction and defects liability period for the Project.
Financial Effects
The Services are expected to contribute positively to the revenue, earnings and net assets of HEB Group over the duration of the Services.
The Services will not have any impact on the share capital and/or shareholding structure of HEB.
The Services is expected to be funded via internally generated funds and/or external borrowings.
Risk Factors
The risk factors affecting the Services include, but are not limited to, execution risks, such as dependency on the schedule of implementation and progress of the Project given the role of SMHB in providing the Services as described above.
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.
Approval Required
The Services, 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.
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 Services.
Directors' Statement
The Board of Directors, after considering all the relevant factors, is of the opinion that the acceptance of the Services is in the best interest of HEB Group.
This announcement is dated 28 July 2026.