JOHOR and Pahang may be two states most devastated by flash flood incidents in Malaysia but together they have contributed to Ranhill Utilities Bhd’s coffers via RM161.26 mil in non-revenue water (NRW) projects.
Yesterday (Dec 4), the company’s wholly-owned subsidiary Ranhill Water Services Sdn Bhd (RWS) received two letters of award (LOA) from both states with Johor’s contract valued at RM156.76 mil.
To be completed by Dec 31, 2023 (start date: Jan 1, 2022), the job scope entails the establishment and re-establishment of district meter areas (DMA) as well as monitoring, maintaining, and providing verification of the DMA meters.
Additionally, RWS will also upgrade and maintain the AquaSMART system while providing third-party services such as leak repair works, pipe connection ancillary works, reservoir monitoring, and pressure management.
RWS has since 2005 taken up NRW reduction projects in Johor and the most recent contract in the state represents the sixth successive project win since 2011 through a competitive open tender process.
The company has reduced NRW in Johor to 24.88% in 2021 from over 37% in 2005. RWS has also secured NRW reduction projects in Malacca, Kedah, Kelantan, Terengganu, Perlis, and Pahang.
As for the Pahang project which RWS is a subcontractor through Jejak Teknologi Sdn Bhd, the project has a duration of eight months from Jan 5 to Sept 5 this year.
The scope of work consists of the construction of the geographical information system (GIS), including GIS mapping, installation of the GIS software and hardware supply as well as the installation and setup of the AquaSMART module.
Moreover, RWS will also be responsible for the establishment of the NRW control centre for measuring and monitoring NRW monthly.
“We are happy with securing these NRW contracts as these projects strengthen our NRW reduction project profile and solidified RWS’s reputation in Johor and across the country as the market leader in holistic NRW management,” commented Ranhill Utilities’ president/CEO Tan Sri Hamdan Mohamad.
The project in Johor is funded by Ranhill SAJ Sdn Bhd’s operating expenditure as approved by National Water Services Commission (SPAN) while the project in Pahang is funded entirely by the Federal Government to assist water operators in reducing NRW losses.
“We expect both projects to contribute positively to the earnings of RWS and Ranhill for the financial year ending Dec 31, 2022 (FYE2022) and FYE2023,” added Hamdan.
At the close of yesterday’s (Jan 4) trading, Ranhill Utilities was up 0.5 sen or 0.93% to RM54.5 sen with 65,900 shares traded, thus valuing the company at RM706 mil. – Jan 5, 2022
