CIVIL engineering contractor Loh & Loh Corp Bhd sees upcoming water projects in the country providing a fillip to the company's earnings in the future, given its expertise in this area, said managing director Jason Loh.
“There are currently a lot of water projects being planned. If the Government decides to implement them, there will be more jobs in the water sector,” he said after the company's AGM in Kuala Lumpur yesterday.
Currently, 50% of Loh & Loh's revenue comes from water projects.
For the year ended Dec 31, 2003, the company recorded a net profit of RM6.1mil on RM18.5mil in revenue.
Among Loh & Loh's current contracts are pump station and water service projects in Putrajaya and Penang, while subsidiary Water Engineering Technology Sdn Bhd is involved in a water supply project in Dungun.
Loh said the company expected to clinch some of the planned water projects, currently at various stages of government approval.
They include the RM2bil water pipe replacement project in Selangor and the Federal Territory due to begin soon, the Pahang-Selangor water transfer project, and the sewerage project in Jelutong, Penang, for which Loh & Loh has been pre-qualified.
He said the company expected the Government to decide on the projects soon.
According to Loh, the Selangor-Pahang water transfer project is awaiting a funding decision by the Japan Bank of International Cooperation.
“We understand there are a lot of pipes that need replacing, and we can contribute our expertise,” Loh said, adding that the company had also tied up with a French company, Sade, which had expertise in trenchless pipe laying.
Loh said the company at present had an order book of about RM200mil, which would last it until next year.
“We are bidding for projects valued at between RM1.2bil and RM1.3bil, of which RM400mil worth were for projects in India and Brunei in conjunction with local partners,” he added.