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 DSONIC 5216 DATASONIC GROUP BERHAD  clinches contract in Africa worth almost RM1 bil — sources

KUALA LUMPUR (Jan 18): Main Market-listed technology firm Datasonic Group Bhd has secured a contract, which has an estimated value of close to RM1 billion over 10 years, to provide total turnkey solutions for the land office of a West African nation, according to market sources.

“It is a PFI (private finance initiative) project, whereby the African country's government and Datasonic will split the revenue in a ratio. The contract value for Datasonic’s portion is projected to be around RM100 million every year,” a source told The Edge.

“Upon the expiry of the initial term (10 years), the agreement shall automatically be renewed for a further term of five years, subject to the revision on profit-sharing formula,” he said

It is learnt that the African country and Datasonic have agreed that the prevailing rate chargeable on a successful land title issuance under the e-land system would be €1,000 (or around RM4,672).

In other words, Datasonic will be collecting €400 for every transaction made.

According to sources, the African country guarantees a minimum number of land title migration and issuance during the contract period.

Another source said the African nation has signed an agreement and the official announcement shall be made by Datasonic soon — possibly as early as Wednesday (Jan 18).

It is understood that Datasonic, being a security-based information and communications technology (ICT) solutions provider, will build the domain name system, as well as the IT infrastructure and facility for the coastal country.

“Currently, the West African country’s land office is still using the old filing system which they inherited from the French colonial era. Their system is outdated and quite messy at the moment, so they have seen a lot of land title dispute cases,” the source highlighted.

“Datasonic will now be providing an identity management system to their land office by using biometrics technology, including face recognition. If this project is successful, they might replicate it in other African countries,” the source added.

However, the sources acknowledged that there are always concerns about project risks abroad, particularly in developing nations.

http://www.theedgemarkets.com/node/652208

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