KUALA LUMPUR (July 27): Ranhill Utilities Bhd has bagged a mechanical and electrical (M&E) works contract worth RM14.7 million for the Merlimau water treatment plant and Lanchang intake in Melaka.

In a bourse filing today, the group said its wholly-owned unit Ranhill Water Technologies Sdn Bhd has signed a letter of acceptance from Build Land Technology Sdn Bhd for the project.

"The project is part of capital development works for Syarikat Air Melaka Bhd being undertaken by Pengurusan Aset Air Bhd (PAAB). The end client for the contract as stated in the letter of award shall be PAAB. As such, the contract will be funded entirely by PAAB," said Ranhill Utilities.

According to the group, the 24-month contract comprises the supply of all materials, labour, plant and applicable necessaries for the execution of the M&E works.

The work package includes installation of flow meter and new surge vessel, rehabilitation, new supervisory control and data acquisition system as well as supply of new piper and connection of existing pipe.

"The project is to be undertaken over the next 24 months [and] will contribute positively to the earnings of Ranhill for the financial year ending Dec 31, 2020," the group said.

Shares in Ranhill settled 1.5 sen or 1.66% lower at 89 sen with 671,400 units changing hands. This gives the counter a market capitalisation of RM954.91 million.