G CAPITAL Bhd’s pivot outside the realm of the transportation segment which has been the company’s sole revenue contributor since its inception has gained momentum as it landed its first non-revenue water (NRW) project to complement its venture into the renewable venture scene.
Yesterday (July 8), GCAP said its 51%-owned subsidiary G Capital Water Solutions Sdn Bhd (formerly ZMZ Synergy Sdn Bhd) – a NRW specialist – has been awarded a contract worth RM7.05 mil to reduce NRW in Pulau Langkawi.
A filing with Bursa Malaysia today shows that the letter of award from Pembinaan Limpah Bersatu Sdn Bhd relates to the “Program NRW Nasional Pendekatan 1: Pulau Langkawi” which is managed and funded by Environment and Water Ministry.
“We are proud to announce GCAP group’s first NRW project winning. This is a good head start for GCAP Group in the NRW field and for the new management team of GCAP Water Solutions ever since we assumed 51% ownership on Feb 28,” commented GCAP’s executive director Datuk Yap Yee Ping.
With this new contract, G Capital Water Solutions’ total order book stands at RM9.78 mil to-date.
The project is scheduled for completion within 13 months from July 2022. With a primary objective of NRW reduction at Pulau Langkawi by 10 million litres daily, the scope of work includes 55 km of pipeline’s leaking inspection using the world class leak detection technology named “SmartBall Leak Detection System”.
Out of the length, 35 km which are submarine pipelines from the mainland to Langkawi island supplies more than 50% of the potable water requirement in Langkawi island. Other NRW specialist works expected of GCAP include geographic information technology (GIS) updating, hydraulic modelling, advanced pressure management and active leakage control.
NRW is basically water that has been produced but is “lost” before it reaches the end-user. Losses can either take the form of physical losses (tank overflow, pipe burst and leaks and pipe flushing) or commercial losses (water theft, metering inaccuracies and meter reading errors).”
“Our stepping into the NRW field is in line with the Malaysian Government’s target under the 12th Malaysia Plan (12MP) to reduce NRW to 25% from 36.4% as per the 2020 Sustainable Development Goals,” explained Yap.
“NRW is no stranger to the management team; my team members and I have prior experience serving multiple top-notch public utilities solution provider. Pivoting on that, we are able to leverage our experience in public utilities and scale on this NRW business.”
With the cutting-edge “SmartBall Leak Detection System” technology, reducing NRW on leakages is no longer just a mere pipe replacement stretching a few hundred kilometres but a correct fix at the leaking point.
“I believe we have a correct formula to meet the12MP target for NRW while generating sustainable recurring income for the GCAP group,” added Yap.
Currently, GCAP has two strong RE assets on its plate – a mini-hydropower plant through Perak Hydro Renewable Energy Corporation Sdn Bhd (PHREC) and solar power projects through Solarcity Malaysia which are both poised to reduce the group’s reliance on its transportation services business segment.
At the close of yesterday’s (July 8) trading, GCAP was down 0.5 sen or 1.02% to 48.5 sen with 144,000 shares traded, thus valuing the company at RM155 mil. – July 9, 2022
