Penta Ocean Construction : Substantial Completion of Contract T-08, DTSS Phase 2 Project in Singapore

Penta-Ocean Construction Co., Ltd.

Tokyo, Japan - March 14, 2024 -It has been almost three years since Penta-Ocean Construction Co., Ltd. (President Takuzo Shimizu, hereinafter POC) and Koh Brothers Eco Engineering Ltd. (Chairman KOH KENG SIAMG, hereinafter KBE), which is listed on the Singapore Stock Exchange Catalyst Market, started a collaboration (On May 28, 2021, POC acquired approximately 28.8% of KBE's shares and KBE became an equity-method affiliate of POC.) Founded in 1975, KBE is an engineering company engaged in civil engineering and building construction work, water and wastewater treatment projects, as well as palm oil refining and bio-energy projects.

POC hereby announces that the Contract T-08 of the Deep Tunnel Sewerage System (DTSS) Phase 2 Project, which has been undertaken jointly by POC and a leading Singaporean contractor Koh Brothers Building and Civil Engineering Contractor Pte. Limited (KBE's 100% subsidiary, hereinafter KBCE) in the form of JV, is about to be completed successfully.

In 2017, the JV consisting of POC and KBCE was awarded the contract T-08 by the Singaporean Public Utilities Board (PUB). Ahead of other contracts of the Project, the JV completed construction of a total of four shield tunnels (total extension 10km) including two undersea tunnels. In addition, the JV achieved 10 million accident-free manhours in 2023 and it is still counting. The JV received high praise from PUB, the client, for its exemplary progress and safety management in the project, and was awarded in 2022 the PUB Construction Safety Award 2022, which represents the organization's highest honour whose recipients are selected from all PUB construction sites.

In terms of quality, the JV collaborated with G & W Ready-Mix, a company of Koh Brothers Group Limited which is the parent company of KBE, to develop and manufacture Microbiological Influenced Corrosion (MIC) resistant concrete (100-year service life) resistant to sulfide gas generated in sewer tunnels. The JV successfully placed the said concrete for the first time in Singapore, which is expected to significantly contribute to maintaining the quality and improving the service life of sewer pipes in Singapore.

Over the past 60 years since 1964, POC has participated in a number of large-scale projects in Singapore, from marine civil engineering projects such as reclamation and construction of container terminals, land-based civil engineering projects such as MRTs and highways, to building construction projects such as construction of landmark commercial facilities and large-scale hospitals. KBCE, a 100% subsidiary of KBE, is one of the leading contractors in Singapore with the highest-grade qualifications for civil engineering and building construction works, as well as M&E work. KBCE has an excellent construction track record showcased by the Marina Barrage seawater desalination project in Marina Bay, the Changi Water Treatment Plant, and Downtown Line Bugis MRT Station, and demonstrates a competitive edge in land civil engineering work such as construction of diaphragm walls.

The two companies are now working together on tenders for land civil engineering projects in Singapore, and have begun human resource exchanges, with young KBE employees participating in a three-month training program in Japan and interacting with young POC employees. Both companies are starting to benefit from the synergistic effect of the capital alliance. In the civil engineering field in Singapore, large-scale projects such as the redevelopment of coastal areas in the south and projects of protective measures against sea level rise are expected to be in demand. We are confident that we will further strengthen our business base in the civil engineering field in Singapore by leveraging the respective strengths of the two companies.

Going forward, POC and KBE will contribute to the sustainable development of Singapore through sustainable construction business activities from an ESG perspective, which in turn will contribute to the sustainable growth of both companies.

Location Map of the Contract T-08 for DTSS Phase 2

The Completed DTSS Tunnel (after the installation of Microbiological Influenced Corrosion (MIC)resistant concrete)