Prestariang signs 15-year deal

Its unit will carry out modernisation of immigration system

PETALING JAYA: Prestariang Bhd has entered into a 15-year concession agreement with the government for the implementation of a RM3.5bil integrated technology platform to modernise the core applications and infrastructure of the country’s immigration system.

In a filing with the stock exchange, the group said Prestariang Skin Sdn Bhd (Pskin), a unit of Prestariang Services Sdn Bhd, which in turn is a subsidiary of Prestariang, had entered into the agreement yesterday with the government, represented by the Home Affairs Ministry.

Prestariang, which was suspended yesterday, closed 8.18% higher at RM2.38 on Monday. The stock will resume trading today at 9am.

Via the agreement, it said, the company has been granted the authority to undertake the planning, design, financing, development, customisation, supply, delivery, installation, configuration, integration, interfacing, testing and commissioning of the system as well as carrying out maintenance services,

It said the project, Sistem Kawalan Imigresen Nasional (Skin), will be implemented by way of a public private partnership through the build, operate, maintain and transfer method.

The group added that payment would only commence upon full commissioning of the system (after three years), with an average annual payment of RM294.7mil from year four to year 15 during the maintenance and technical operation phase.

It said the concession agreement was conditional upon Pskin having obtained a written notice from the government confirming that the company had fulfilled the conditions precedent within six months from the date of execution of the agreement, or an extended period not exceeding three months as may be granted by the government.

“The concession is expected to contribute positively to the future earnings and earnings per share and net assets per share of the Prestariang group.

“The development cost is expected to be financed via a combination of internally generated funds, borrowings and/or other fund-raising exercises,” it said.

The group said the concession would be subject to the usual project and termination risks in relation to the agreement.

However, it said the board of directors would take the necessary steps to minimise or mitigate any risks that may arise pursuant to the concession as and when it occurs.

In March, Prestariang had inked a heads of agreement with Thales Communications & Security SAS and Thales Malaysia Sdn Bhd to undertake the revamp of the country’s national immigration system’s core applications and infrastructure under the Skin system. Thales is the main technology partner for the project.

Skin will provide a comprehensive and integrated solution composed of five main modules, namely, passport, visa, border control, enforcement and risk assessment.

It will bring the immigration and border control systems in line with national security objectives.