Gamuda bags RM1.97bil treatment plant project

PETALING JAYA: Gamuda Bhd has clinched a RM1.97bil project from Pengurusan Air Selangor to design and build the proposed Sg Rasau Water water treatment plant as the main contractor.

The contract win takes the engineering and construction company’s construction order book value to RM14.4bil, a new record high for the group.

“The Rasau Water Supply Scheme is expected to produce a clean water supply of up to 700 million litres a day to the Klang region by the first stage of completion in 2025,” said Gamuda in a statement yesterday.

This water supply scheme is projected to increase the water supply reserve margin to almost 21% by the end of June 2025. It was also estimated that without this scheme, the current water supply reserve margin in Klang will drop by almost 2% by 2024.

Gamuda will take possession of the site in mid-July and is scheduled to be completed by June 2025.

Backed by its engineering expertise in designing and constructing dam and water treatment plants locally, Gamuda is tasked to construct a 1,400 million-litre-a-day (mld) capacity intake structure to draw water from ex-mining ponds at Taman Permai in Puchong.

The scope of work requires it to also build a 700-mld water treatment plant near Tanjung Dua Belas, a twin-pipe of 2.4-m diameters as well as two overhead bridges crossing two main highways.

Recent analyst reports noted Gamuda is targeting a construction order book of RM25bil by financial year 2023 (FY23).

The company is set to bid for the multi-billion-ringgit MRT3 line project, the tender for which is scheduled to be called in August.

Gamuda last month was awarded a transport project worth A$1.35bil (RM4.12bil) by the New South Wales government.

Funded by the Australian and NSW governments with the purpose to ensure a better travel and commute experience, the project is a collaboration between the Ferrovial Construction Australia and Gamuda Australia joint venture (JV).

The group also has a JV with Wai Fong Construction Pte Ltd to design and build the Defu station and tunnel project worth S$467mil (RM1.5bil) for Singapore’s Land Transport Authority.

The project, which is expected to complete by 2030, will form a part of Singapore’s 29-km Cross Island Line (CRL) phase 1 mass rapid transit (MRT) line. The CRL is Singapore’s eight MRT line.

Gamuda is in the midst of selling its tolled expressways for RM5.5bil to Amanat Lebuhraya Rakyat, which is scheduled to be completed by the end of August according to reports.

Gains from the sale are expected to translate into a special dividend of 38 sen a share to Gamuda shareholders, analysts wrote after a quarterly conference call with its management.

Gamuda posted a net profit of RM221mil in its third quarter ended April 30, boosted by a stronger performance from its property business in Vietnam (the Caledon City project) and cost-savings from the MRT2 project it is executing.

The company’s net profit for the nine months totalled RM551mil which was 47% higher year-on-year and beat analyst expectations. Gamuda’s shares closed three sen lower at RM3.55 on Friday.

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