Ranhill Utilities Berhad’s wholly-owned subsidiary Ranhill Water Services Sdn Bhd (“RWS”) today announced it has received two letters of award (“LOA”) for non-revenue water (“NRW”) projects in Johor and Pahang with a total combined value of RM161.26 million.
The NRW reduction project in Johor with a contract valued at RM156.76 million will be completed by 31 December 2023 from start date of 1 January 2022. The scope of work covers the establishment and re-establishment of District Meter Areas (“DMA”) as well as monitoring, maintaining, and providing verification of the DMA meters. 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 37.0% in 2005. RWS has also secured NRW reduction projects in Malacca, Kedah, Kelantan, Terengganu, Perlis, and Pahang.
The Pahang project, in which RWS is a subcontractor of the National Non-Revenue Water (“NRW”) Approach 1 For the State of Pahang – Package 1 through Jejak Teknologi Sdn Bhd, has a contract value of RM4.50 million. The project has a duration of eight months from 5 January 2022 and completion by 5 September 2022.
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. RWS will also be responsible for the establishment of the NRW control centre for measuring and monitoring NRW monthly.
President and Chief Executive of Ranhill, Tan Sri Hamdan Mohamad (“Tan Sri Hamdan”), said, “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”.
The project in Johor is funded by Ranhill SAJ Sdn Bhd 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 31 December 2022 (“FYE2022”) and FYE2023”, Tan Sri Hamdan added.