CyanConnode wins $5.4m smart meter contract in Bangladesh

CyanConnode, a maker of narrowband radio mesh networks, has won a $5.4m smarter metering contract from Eastern European energy management system company to provide smart metering to customers in Bangladesh.

The contract will aim to help 58m electricity consumers in the country with their energy needs, as according to Northeast Group Bangladesh is among four South Asian countries that are struggling meet rising electricity demand, failure to collect revenue and poor reliability.

The AIM-listed company will supply its advanced metering infrastructure solution for a 150,000 unit smart meter.

The energy management system company, which has an agreement with the Bangladeshi government, will integrate CyanConnode's hardware with its smart meters and shipment to their production facility over the next 12-18 months.

CyanConnode will also provide its head end server software, which will be hosted by the energy management systems customer, with annual software licence income expected over ten years following the implementation of the smart meter .

Recurring revenue software licences and an annual maintenance contract, which represents 50% of the purchase order value, will be paid yearly in advance and charged on a per meter per year basis.

The new utility in Bangladesh has a consumer base of four million customers, which has potential for follow-on orders.

Executive chairman John Cronin said: "CyanConnode's collaborative approach continues to deliver a scalable business model, enabling the group to bid for and win business on a global basis with partners seeking highly competitive end to end technology solutions.

“Furthermore, establishing an end-to-end eco-system supports the transfer of skills and experience, promoting local wealth generation.”

Shares in CyanConnode were up 8.86% to 0.215p at 1251 GMT.