Rohas Holdings Berhad's 86.8% owned subsidiary, HG Power Transmission Sdn Bhd (HGPT), has received a final award in its arbitration proceedings against the Power Grid Company of Bangladesh Ltd (PGCB).

The dispute arose from a contract entered into on August 7, 2016, where HGPT was responsible for the design, supply, and installation of 132kV and 230kV transmission lines in Bangladesh. A disagreement occurred when PGCB rejected a significant portion of HGPT's price variation invoices, leading HGPT to initiate arbitration on October 16, 2022, under the International Chamber of Commerce rules.

HGPT sought USD 5,518,371.10 (approximately RM 24,542,955.47) from PGCB's originally rejected amount of USD 5,526,367.16, plus an additional price adjustment claim for towers (steel) amounting to no less than USD 219,477.25. The total claim sum was USD 5,737,848.35.

The Sole Arbitrator issued the Final Award on March 31, 2025, ruling that PGCB must pay HGPT USD 1,890,387.98 (approximately RM 8,407,500.54) with interest from November 21, 2021, until full payment. The remaining Claimed Sum was dismissed.

Additionally, the arbitration costs are to be shared equally, with PGCB directed to reimburse HGPT USD 68,250 (approximately RM 303,541.88) and USD 4,700 (approximately RM 20,903.25) as its share. Each party is to bear its own legal costs.

Rohas Group stated that the Final Award is not expected to have a material impact on its operations, as the project was completed in 2020. The awarded sum will enhance Rohas Group's cash flow. However, the unrecovered amount of USD 3,627,983.12 (approximately RM 16,135,454.93) will negatively impact 2024 earnings.