KUALA LUMPUR (March 15): Ranhill Water Services Sdn Bhd (RWS), an indirect wholly-owned subsidiary of Ranhill Utilities Bhd, has accepted a letter of acceptance from Pengurusan Aset Air Bhd (PAAB) for a RM61.49 million pipe replacement project.

In a filing with the bourse, Ranhill said the works package is for the replacement of old pipes and related works in Kota Bharu Timur, Machang, Tanah Merah and Kuala Krai in Kelantan.

It said the works are to be undertaken immediately with the date of possession being March 29, 2022 and to be completed by March 28, 2024.

The works include the collection, delivery, construction, installation, and completion of high density polyethylene and mild steel pipe replacement works with a total length of 103km.

"The works are part of the capital expenditure works programme being implemented by PAAB for the development of water infrastructure in the state of Kelantan. The works were secured by RWS in a competitive open tender exercise undertaken by PAAB through the tender documents dated Jan 17, 2022," said Ranhill.

The group added that the works will be funded entirely by PAAB as part of its capital expenditure work programme for network management and non-revenue water (NRW) reduction programme in Kelantan.

As part of its initiative to support the government's implementation of the Professional Training and Education for Growing Entrepreneurs programme, RWS will be recruiting a minimum of 26 personnel under this programme throughout the implementation of the works.

Ranhill said that RWS has been actively involved in Kelantan's water supply projects, having secured since 2012 three NRW management contracts from Air Kelantan Sdn Bhd.

"The project forms part of RWS' strategic initiative to further enhance its presence in Kelantan and strengthen Ranhill's credential as a holistic NRW management specialist catering to both traditional NRW management activities as well as NRW civil works.

"The directors of Ranhill after having considered all aspects of the works are of the opinion that the implementation of the works is in the best interest of the group. This win further solidifies RWS' reputation throughout Malaysia as a leader in holistic water network management," it said.

Ranhill fell one sen or 2% to close at 49 sen on Tuesday, translating into a market capitalisation of RM635 million.