Ranhill Awarded Kelantan Pipe Replacement Contract Worth RM61.49 Million

Ranhill Utilities Berhad has been awarded an RM61.49 million worth of contract from the Pengurusan Aset Air Berhad for the replacement of old/aging pipes with new pipes for OP3-19 in the State of Kelantan including to conduct ancillary works in Kota Bharu Timur, Machang, Tanah Merah and Kuala Krai.

The project is part of the capital expenditure works program implemented by PAAB for network management and non-revenue water (“NRW”) reduction program in the State of Kelantan. It is expected to commence immediately and is scheduled to be completed within twenty-four months.

Under the term of the contract, RWS will collect, deliver, construct, install, and complete High-Density Poly Ethylene (“HDPE”) and Mild Steel (“MS”) pipe replacement works that spans across a total length of 103-km in the district of Kota Bharu Timur, Machang, Tanah Merah and Kuala Krai. 

The major scope of works for this project comprises the replacement of existing distribution and communication pipe, the establishment of new District Metering Areas (“DMAs”), replacement, and relocation of DMAs flowmeters, installation of pressure-reducing valves (“PRV”) system, and flowmeters at reservoir outlet, installation of pressure loggers at critical points, as well as testing and commissioning.

Ranhill which would need more contracts to keep its order book healthy said it expects the contract to bring a positive impact on its earnings for the financial year ending 2022 until 2024.

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