JAKS Resources strong contender to supply pipes for Langat plant

KUALA LUMPUR: JAKS Resources Bhd is a strong contender for the RM500mil worth of jobs to be awarded with the implementation of the Langat centralised sewage treatment plant and sewer pipe network.

AmResearch said on Monday the jobs yet to be awarded may be related to the water pipes and reservoir packages in relation to the distribution network. 

“It (JAKS) is the only player capable of delivering large diameter pipes on a supply-and-lay basis,” it said. It believed the tender for the smaller diameter pipe packages could be competitive given the proliferation of suppliers in the market. 

Last Friday, the MMC announced the company and Sumitomo clinched a RM1.5bil job for the Langat centralised sewage treatment plant and sewer pipe network connection for the Langat river basin catchment. 

The project will take 72 months to complete. This is the second job that MMC has won in relation to the Langat 2 water treatment plant project (WTP). 

AmResearch said that in April, MMC Corp was part of the Salcon-MMC-AZRB JV that clinched the first Langat 2 package in April.  The RM993.8mil award then was to build Langat 2 WTP and water reticulation system phase 1.

MMC Corp holds a 34% stake in the JV company, while Salcon Bhd holds 36% and Ahmad Zaki Sdn Bhd (30%). 

“We believe that the remaining RM500mil worth of jobs yet to be awarded may be related to water pipes and reservoir packages in relation to the distribution network,” it said.

AmResearch said the award was timely as Prime Minister Datuk Seri Najib Tun Razak mentioned plans to expedite the construction of the Langat 2 plant in his Budget 2015 speech. 

“In order to reduce non-revenue water, the government will also allocate RM112mil to set up leakage control zones and repair leaking pipes. Over the long term, the government will also formulate a National Water Blueprint. 

“With the master agreement signed last month to facilitate the water restructuring exercise in Selangor, we believe that the Langat 2 project will carry on without much hindrance. Maintain Neutral,” it said.