Ranhill SAJ signs joint billing deal with IWK, eyes take over of sewerage operations in Johor

KUALA LUMPUR: RANHILL HOLDINGS BHD said a subsidiary, SAJ Ranhill Sdn Bhd, has entered into an agreement with Indah Water Konsortium Sdn Bhd (IWK) to implement a single bill system for water supply and sewerage services in Johor.

The deal, according to Ranhill, will pave the way for the company to eventually take over sewerage operations in Johor.

“Upon successful implementation of the joint billing exercise and subject to approvals from the relevant authorities, SAJ will pursue a complete integration of water supply and sewerage operations, and ultimately take over the sewerage operations in Johor,” Ranhill said.

SAJ is the sole licensee for water treatment and distribution in Johor, while government owned IWK is the national sewerage company.

The joint billing exercise involved the development of a combined bill incorporating the prevailing water supply tariff and sewerage tariff rate in a single bill, with an agreed fee payable to SAJ by IWK for every joint bills issued by SAJ.

The integrated bill system will be implemented in 2019.

“Our ‘source-to-tap’ concept entails the complete cycle of water services, from the sourcing and treatment of raw water to supplying potable water to consumers, as well as bill collection,” Ranhill’s president and chief executive Tan Sri Hamdan Mohamad said in a statement today.

IWK is the provider of sewerage services in Johor since 1995.

“Moving forward, IWK aims to implement joint billing with other state operators as well as part of restructuring the water supply and sewerage services nationwide,” its CEO Faizal Othman said.

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