About RM3.4 billion has been allocated for this “accelerated NRW reduction programme” in Johor over the next seven years by water asset management company Pengurusan Aset Air Sdn Bhd (PAAB) and Ranhill SAJ, the state’s exclusive water services operator.
Ranhill SAJ said it will pay back the capex from PAAB through a lease rental arrangement with the company, it said in a statement today.
Ranhill SAJ, which is a subsidiary of Ranhill Holdings Berhad, accounts for 77% of the Ranhill Group’s total revenue.
This programme will result in the state, with the second highest population in the country, to benefit from the replacement and refurbishment of ageing pipes to stop water leakage problems in water-stressed areas.
Ranhill SAJ said it had reduced the state’s NRW from 45% in 1999 to the present 24.12%, with physical loss of 17.5 m3 per kilometre of pipe per day.
Ranhill SAJ said it is confident of completing 94 pipe rehabilitation projects by 2020.
This is expected to save 323 million litres per day (mld) by 2025, which is equivalent to the amount of water being supplied to 323,000 homes.
Steps will also be taken to address inaccurate meter readings and illegal use of water in the state.
Ranhill SAJ said the NRW reduction programme has been approved in principle by the Suruhanjaya Perkhidmatan Air Negara (SPAN).
It is expected to spur the local economy and provide experienced local contractors with the opportunity to tender for work to be sub-contracted out.
Ranhill Holdings Berhad president and chief executive Hamdan Mohamad said Ranhill SAJ is already in full compliance with meeting the key performance indicators (KPIs) set by SPAN to reduce water loss in the state.
It has achieved the “lowest NRW per kilometre of pipe in Malaysia”, he added.
“We must now fast-track the programme as demand for water continues to rise in tandem with growth in population, industrialisation and property development projects in Johor.
“We have identified areas where physical and commercial losses are most evident for work under this programme.”
Ranhill SAJ has been operating in Johor for nearly 20 years as the sole provider of water supply services.
The company recently entered into an agreement with Indah Water Konsortium Sdn Bhd to implement joint billing for water supply and sewerage services in the state in 2019.