KUALA LUMPUR (April 2): Rohas Tecnic Bhd (KL:ROHAS) said its 86.8%-owned subsidiary HG Power Transmission Sdn Bhd has won an arbitration case against the Power Grid Company of Bangladesh Ltd (PGCB), but the sum awarded was lower than initially claimed.

Power Grid was ordered to pay HG Power US$1.89 million (RM8.407 million), plus interest accrued from Nov 21, 2021, until full payment is made, said Rohas in a bourse filing.

The arbitrator dismissed the remaining amount of US$3.63 million claimed by HG Power.

HG Power had initiated the arbitration proceedings in October 2022, seeking US$5.737 million from Power Grid for outstanding invoice payments related to price variations and additional claims under a contract entered into in 2016 for the supply and installation of 132kV and 230kV transmission lines in Bangladesh.

Rohas, in its filing, said the unrecovered portion of the total claimed sum will have a negative impact on its 2024 earnings.

“While partial provisions have been made, the remaining adjustments will be incorporated into Rohas’ audited consolidated financial statements for the financial year ended Dec 31, 2024, pending review by the company’s auditors,” said the utility construction and tower fabrication group.

It added that the arbitration costs will be split equally between both parties, with Power Grid directed to reimburse HG Power US$68,250 (RM303,541) and US$4,700 (RM20,903) as its share.

Rohas shares closed unchanged at 23 sen on Wednesday, giving the group a market capitalisation of RM108.71 million.

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