Yongding's $1.1 billion project has made significant progress.
2020-06-13
Recently, Yongding's "Expansion, Reconstruction and Upgrade of Bangladesh's National Power Grid System Project" of approximately US $1.1 billion million has made significant progress. The performance of the project contract is of great significance and has a significant positive impact on the company's new business expansion.
Recently, Yongding's "Expansion, Reconstruction and Upgrade of Bangladesh's National Power Grid System Project" of approximately US $1.1 billion million has made significant progress. The performance of the project contract is of great significance and has a significant positive impact on the company's new business expansion.
In 2016, Yongding, a consortium formed by Beijing Zhongcable Tongda Electric Complete Set Co., Ltd. and Fujian Electric Power Engineering Contracting Company, and Bangladesh State Grid Company of Bangladesh Ltd. (PGCB) signed the EPC general contract for "Expansion, Reconstruction and Upgrading of Bangladesh National Power Grid System Project" on October 10, 2016. The project covers 99 substations, 998 kilometers of transmission lines, and 7 regional inspection and maintenance centers. The construction period is 4.5 years and the warranty period is 1 year. The contract value is equivalent to 1.141 billion US dollars.
On June 9, Yongding received a circular letter from the Department of Foreign Economic Affairs of the Ministry of Finance of Bangladesh: the EPC project financing loan agreement was signed on June 7, 2020. As of now, the contract has not officially entered into force. If the contract becomes effective and the project is formally implemented, the impact on the Company's results for the current year will be based on the progress of completion of the project and accounting standards to recognize the related revenue and profit, which is expected to have a positive impact on the Company's operating income and profit in 2020 and future years.
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