Jumping JAKs Flash Once More!

While awaiting the BOT water supply project in China to come to reality, JAKS has added to its book value, the Paya Peda Dam Project. This was first announced on 3 March 2010. The official letter of award to a joint venture company of JAKS and Pembinaan Sujaman Sdn Bhd (PSSB) has now been received from the Ministry of Agriculture and Agro-Based Industry Malaysia.

What is this project?

The project is the undertaking of the construction of the Paya Peda Dam in Besut, Terengganu for a total cost consideration of RM333 million. The terms of the joint venture is currently been varied with the agreement of PSSB.

Further to the Company’s on the Paya Peda Dam Project, the Board of Directors of JRB is pleased to announce that subsequent to the receipt of the letter of award from Ministry of Agriculture and Agro-Based Industry Malaysia informing of the Government’s offer to the joint venture of JRB with Pembinaan Sujaman Sdn Bhd (PSSB) to undertake the construction of the Paya Peda Dam in Besut, Terengganu (“the Project”) for a total contract sum of RM333 million subject to certain terms and conditions, JAKS has on 18 March 2010 agreed with PSSB to vary the terms of the joint venture.

JAKS shall now be responsible to lead, finalise, undertake, perform and complete all works in relation to the project for and on behalf of the joint venture.

JAKS will finance the project through internally generated funds and external bank borrowings. The financing will not have any material effect on the earnings per share, net assets per share or gearing of the JAKS Group for the financial year ending 31 October 2010 and the project is expected to contribute positively to the Group’s future earnings.

None of the Directors and Major Shareholders of the Company and/or persons connected with them has any interest, direct or indirect, in the project.

The Directors of JAKS are of the opinion that the project is in the best interest of the JAKS Group.

I think with this project going on stream and the Pahang-Selangor Water Transfer Project and the China Water Supply Project in tow, JAKS should be the counter to watch for.

So, we can see Jumping JAKS Flash again, won't we?