Beyond Gamuda and IJM, another potential beneficiary of Selangor’s rejuvenation of big-ticket flood mitigation jobs would be Econpile Holdings Bhd.
PETALING JAYA: Should the proposal to build a RM6bil Japanese-inspired underground flood tunnel system in Selangor be approved by the federal government, it could herald a revival of larger-scale flood mitigation schemes.
CIMB Securities Research also said in a note that listed contractors with larger balance sheets are poised to benefit from the underground tunnel project.
This is assuming the RM6bil proposal is implemented as a single package under public-private partnership.
“Under this scenario, we believe that Gamuda Bhd
has the upper hand, having proposed the Smart2 tunnel as a tool to combat flooding in the western parts of the Klang Valley.
“To be delivered in two phases, the 22-km Smart2 tunnel covers the five flood-prone areas of Taman Sri Muda, Shah Alam, Setia Alam, Bandar Klang and Taman Sentosa.
“It includes tributaries, interceptor channels and a pumping system that pumps floodwater into the sea, and includes river improvement works that increase the capacity of Sungai Klang by 10%.”
CIMB Securities Research also said that IJM Corp Bhd could emerge as an alternative contender.
It is noteworthy that a key condition for the privatisation of the Canal City – now known as IJM Rimbayu township – was the incorporation of an 18-km canal linking Sungai Klang and Sungai Langat that serves as a flood control mechanism.
It is notable that IJM was also a member of a Japanese-Malaysian consortium that successfully delivered the 44.6-km tunnelling package worth RM1.3bil under the Pahang-Selangor Interstate Raw Water Transfer project.
Beyond Gamuda and IJM, another potential beneficiary of Selangor’s rejuvenation of big-ticket flood mitigation jobs would be Econpile Holdings Bhd.
This is because such jobs may drive higher demand for specialised piling services that support foundation or reinforcement work such as flood embankments, dikes, diaphragm walls and retention ponds.
So far, the bulk of the flood mitigation projects in the Klang Valley have revolved around small to medium-sized packages that have mainly been awarded to unlisted contractors.
It was recently reported that the Selangor state government is mulling a flood mitigation proposal based on similar schemes adopted in the Japanese cities of Kawasaki and Saitama, where water is directed straight into underground tunnels.
The proposal, designed to prevent flooding in the western areas of Kuala Lumpur and the state, has been submitted to Deputy Prime Minister and Minister of Energy Transition and Water Transformation Datuk Seri Fadillah Yusof, and would be incorporated under the Air Selangor Master Plan.
CIMB Securities Research also noted that Malaysian Resources Corp Bhd (MRCB), which has two ongoing flood mitigation projects, could be among the frontrunners for the Sg Damansara Flood Mitigation works.
Tenders for the RM481mil Sg Damansara flood mitigation project have closed.
MRCB’s ongoing projects are the RM250mil Sg Langat Flood Mitigation Phase 2 and the RM380mil Sg Pahang Flood Mitigation Phase 3.
