KUALA LUMPUR (July 1): Gamuda Bhd has bagged a RM1.96 billion construction contract from Pengurusan Air Selangor Sdn Bhd (Air Selangor) as the main contractor for the Sg Rasau water treatment plant in Selangor.

In a bourse filing, Gamuda said it received a letter of acceptance on Friday (July 1) for the award of the Sg Rasau water supply scheme (stage 1) project, also dubbed "Package 1: Design and build of proposed Rasau intake, raw water pumping mains, water treatment plant and associated works" from Air Selangor.

The scope of work of this water supply scheme (stage 1) comprises the design and build of the following:

An intake structure of a 1400 million-litre-a-day (Mld) capacity to draw augmented raw water from the ex-mining ponds at Taman Putra Permai, Puchong;  A 700 Mld of water treatment plant near Tanjung Dua Belas including civil, structural and building, process plant mechanical works, electrical, instrumentation, SCADA, building services and associated external works; 2.4m diameter twin-pipe connecting the Intake structure and the water treatment plant; Two overhead bridges crossing Elite Highway and SKVE Highway.

The site possession of this 35.5-month project will be starting on July 15, 2022, with the aim to complete it by June 2025.

The Rasau water treatment plant contract adds RM2 billion to Gamuda’s all-time high of RM12.4 billion order book, bringing its total construction order book to RM14.4 billion.

“The development of this water supply scheme is crucial as Sungai Selangor Scheme is currently the only source of raw water supply to the Klang Region. With the implementation of the Rasau Scheme, the water reserve margin is expected to increase to 20.9% by the end of June 2025. Without the new Rasau Water Treatment Plant, the current water supply reserve margin in Klang will drop to 1.9% by 2024,” Gamuda said in a statement.  

“The Rasau water supply scheme is expected to produce a clean water supply of up to 700 million litres a day to the Klang region by the first stage of completion in 2025. Stage 1 of the Rasau water supply scheme consists of three packages in total.

Gamuda claimed it has a proven track record in designing and constructing dam and water treatment plants locally, with the completion of the Sungai Selangor water supply scheme (Phase 3) in 2000.

Gamuda's share price fell three sen to close at RM3.55 on Friday (July 1), giving it a market capitalisation of RM9.07 billion. Year to date, the stock has rallied 24% or 68 sen from RM2.87.