KUALA LUMPUR: AmResearch sees more upside for JAKS Resources Bhd and IJM Corp Bhd after their 40:60 JV-partnership secured the Semantan Pipeline and related works under the Pahang-Selangor interstate raw water transfer project (IRWT) for an estimated RM268 million.

The research house said on Friday, Dec 3 that of significance is that latest contract represents the third major award for the Pahang portion of the IRWT - following the tunnelling package (RM1.3bil) and Semantan intake pumping station and related works (RM318mil: main contractor - George Kent - Loh & Loh-Hazama JV ).

AmResearch said the remaining job yet to be tendered out is for the Kelau Dam worth over RM200mil, of which we understand that any decision would only be known in three months.

"More importantly, we believe a successful roll-out of this package could put both IJM and JAKS in a position to also bid for the piping works under Langat 2 (the Selangor portion of the IRWT) worth RM800 million to RM900 million. But, the status of the RM5 billion project is still evolving due to uncertainties surrounding the restructuring of Selangor's fragmented water industry," it said.