KUALA LUMPUR: Ranhill Utilities Bhd’s indirect wholly-owned subsidiary, Ranhill Water Services Berhad (RWS) has secured a RM61.49mil contract from Pengurusan Aset Air Bhd (PAAB) to replace old/ageing pipes with new pipes for OP3-19 in Kelantan.
The contracts also allow Ranhill to conduct ancillary works in Kota Bharu Timur, Machang, Tanah Merah and Kuala Krai.
Ranhill, in a statement, said the project was part of the capital expenditure works program implemented by PAAB for network management and non-revenue water (NRW) reduction program in Kelantan.
It is expected to commence immediately on March 29 and it is scheduled to be completed within 24 months on March 28, 2024.
Under the term of the contract, RWS will collect, deliver, construct, install, and complete high-density polyethylene and mild steel 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 system, and flowmeters at reservoir outlet, installation of pressure loggers at critical points, as well as testing and commissioning.
President and chief executive Tan Sri Hamdan Mohamad said Ranhill’s credentialing in water-related projects and specialisation in NRW management played a critical role in improving the efficiency of water utilities around the nation.
“It serves as a testament to our proven track record and ability to secure sizeable contracts from our clients. We expect this contract to bring a positive impact on our earnings for the financial year ending Dec 31, 2022 until 2024.
“We will continue to leverage on our core expertise to secure new projects and we firmly believe that this project will add to Ranhill’s water management division growing footprint of projects in Kelantan,” he said.