- Kinibiz reported that Pengurusan Aset Air Bhd (PAAB) has shortlisted five candidates for a 1,130 million litres/day (mld) water treatment plant (WTP) worth around RM1.2bil.
- The shortlisted candidates are IJM Corp, Gamuda, UEM Construction Sdn Bhd, a JV among Salcon, MMC Corp and Ahmad Zaki Resources Bhd (AZRB), and Asia Baru Construction Sdn Bhd.
- The project is part of the Langat 2 Water Supply Scheme, which in turn forms the Selangor leg of the Pahang-Selangor inter-state raw water transfer programme.
- Thus far, we gather that construction progress on the Pahang end - consisting of the Kelau Dam, tunnelling works, water pumping station and associated piping works - are well underway.
- If awarded, this would be the first package under Langat 2.
- Bernama had recently quoted the Energy, Green Technology and Water Minister as saying that results of the tenders for Langat 2 are slated to be announced next month.
- This is to achieve the target of completing this massive project by end-2016 - covering a working period of 45 months - to ensure adequate water supply in the Klang Valley until 2025, as the ongoing 11 water mitigation projects (RM726mil) are seen only as stop-gap measures.
- Apart from the 1,130 mld WTP, we are unsure about the actual cost or whether components of the Langat 2 have changed over the last two to three years - where newsflow has been scant due to the protracted water imbroglio within Selangor's water industry.
- However, we believe the total cost of Langat 2 - earlier bandied about at up to RM5bil - would now be lower, as prices of hot-rolled coil (HRC) pipes that are to be used would cost much less at current quotes.
- Regardless, we believe the execution of Langat 2 largely depends on the timing and more importantly, the political environment post-general election.
- Zooming in on the pre-qualified contractors, we like IJM and Gamuda for their prior track records in undertaking water-related works. Further down, JAKS Resources could be in the fray for the piping components, for which it is already supplying the Pahang portion under a JV with IJM Corp.
- Similarly, unlisted Loh&Loh Corp may be in the fray by virtue of its expertise as a water engineering specialist - having built ~half the dams in Malaysia.
KC Loh
go go Loh & Loh! hehehe
2013-03-14 21:02