Equipment House gets nod from Jazan Health Cluster for 6-month contract extension

Logo of Scientific and Medical Equipment House Co. (Equipment House)

Scientific and Medical Equipment House Co. (Equipment House) received on Feb. 28 a letter from the Jazan Health Cluster, affiliated with the Ministry of Health, approving the extension of a contract for maintaining and repairing medical devices and equipment in a number of hospitals.

These hospitals include Sabya General Hospital, Samtah General Hospital, Farasan General Hospital, Abu Arish General Hospital, and Bani Malik General Hospital, according to a statement to Tadawul.

The original contract was set to expire on Feb. 29, 2024. The renewal was granted for an additional six months, with a 10% increase in the contractual value to avoid direct procurement, the statement said.

Concluded on Aug. 31, 2024, the renewed contract holds a total extension value of SAR 9.03 million, inclusive of value-added tax (VAT). This amount represents 10% of the original contract value, which stood at SAR 90.3 million.

The company anticipates the financial impact of the contract extension to appear in the second quarter of 2024, the statement added.