KUALA LUMPUR (Oct 11): Privasia Technology Bhd has secured two contracts worth approximately RM1.2 billion in total from the Ministry of Communications and Multimedia relating to the installation and maintenance of fibre optics in both northern and southern regions of the country.

This follows Konsortium Apex-Privasat, a joint venture (JV) between Apex Communications Sdn Bhd and Privasat Sdn Bhd (a wholly owned subsidiary of Privasia), accepting the contracts from the ministry on Tuesday (Oct 11).

In a statement on Tuesday, Privasia said that the contracts signed by Konsortium Apex-Privasat entail the installation of fibre optics and maintenance of fibre-optic infrastructure in surrounding schools, residential, business, commercial and industrial premises under Phase 2 of the expansion of broadband infrastructure using the point of presence (POP) method.

The contract for the southern region (Negeri Sembilan, Melaka and Johor) is worth RM627.2 million while that for the northern region (Kedah and Perak) is worth RM617.5 million.

The duration of the contracts is eight years, for which the implementation shall be completed in three years, followed by a five-year warranty period.

Additionally, the project is expected to strengthen Privasia's existing order book, which currently stands at RM50.3 million excluding the contracts.

According to a joint statement, Privasia group chief executive officer and managing director Datuk Puvanesan Subenthiran and Apex Communications group executive chairman Tan Sri Datuk Abdullah Ali strongly believe a robust information communication technology infrastructure can boost the nation's economic growth.

"We are delighted to be awarded the opportunity to lend our expertise in developing the POP infrastructure within Malaysia.

"The POP project will bridge the connectivity and mobility gap between rural and urban areas, especially since it is estimated that at least 432,300 premises would have high-speed broadband services when both Phases 1 and 2 are completed by the end of the 12th Malaysia Plan in 2025," they said.

Privasia is principally involved in information technology, information and communications technology, and satellite-based network services.

Privasia's share price settled unchanged at 11 sen, bringing the group a market capitalisation of RM67.5 million.