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KJTN Engineering director Kitti Chungsawanant
KUALA LUMPUR: KJTS Group Bhd’s subsidiary, KJTN Engineering Co Ltd has secured a contract worth RM16.77mil from Thailand-based Central World Hotel Co Ltd (Centara).
The building support services said the contract is for the works of retrofit, the provision of management, supervision, personnel, materials, equipment and supplies necessary to operate and maintain the chiller plant (O&M services) and the chilled water supply at Centara Grand Hotel at Central World in Bangkok, Thailand for 15 years.
Centara, a Thai hospitality entity operating for over 19 years, is a part of the Central Group, one of Thailand's largest private conglomerates with diverse investments in over 50 subsidiaries globally.
Under the terms of the agreement, KJTN Engineering shall finance the retrofit works and during the O&M services period charge a fixed fee of 698,147 baht monthly which is equivalent to approximately RM93,155 and a variable fee monthly based on the chilled water supplied.
“The total fixed fee for 15 years will be 125.66 million baht which is equivalent to approximately RM16.76mil,” KJTS said in a statement.
The retrofit works are expected to commence on Feb 1, 2024, and to be completed on Nov 30, 2024.
The O&M services and chilled water supply will commence on Dec 1, 2024, and be completed on Nov 30, 2039. The ownership interest in the chiller plant will be transferred to Centara at the end of the agreement.
"This agreement with Centara symbolises our commitment to expand our business in Thailand as one of KJTS group's core regional markets. It also marks the start of an important business relationship for the KJTS group with the Central Group and we are hopeful that KJTS group will be able to provide more building support services to the Central Group in the future,” KJTN Engineering director Kitti Chungsawanant said.