Latest news with #NPWSS
The Star
18-07-2025
- Business
- The Star
Gamuda JV to develop Perak water infrastructure
The project forms part of the Northern Perak Water Supply Scheme, a strategic initiative with a total estimated development value of RM5bil. PETALING JAYA: Gamuda Bhd and Perbadanan Kemajuan Negeri Perak (PKNPk) have been appointed by the Perak state government to jointly develop and operate water treatment and distribution infrastructure in Kerian, Northern Perak. The project forms part of the Northern Perak Water Supply Scheme (NPWSS), a strategic initiative with a total estimated development value of RM5bil. Introduced by the Perak state and federal governments, the scheme aims to address long-standing water shortages for irrigation, domestic and industrial use in the region. According to the terms of appointment, the Gamuda-PKNPk joint venture (JV) will undertake the infrastructure development and operations on a minimum 40-year concession basis. As part of the project scope, the JV will be responsible for supplying treated water to the upcoming Kerian Integrated Green Industrial Park, while any excess treated water will be sold to the neighbouring state of Penang. The NPWSS scheme involves the transfer of 1,500 million litres per day (MLD) of raw water from Sungai Perak to the Bukit Merah Dam. Of this amount, 500 MLD will be allocated to meet the immediate irrigation needs of Northern Perak, with the remainder to be treated and channelled for domestic and industrial use across the state. The privatisation agreement is expected to be finalised within 90 days from the date of appointment to facilitate timely implementation of the scheme, which is targeted for completion by 2030. The project is still subject to approvals from the relevant regulatory authorities. In a statement, Gamuda Engineering Sdn Bhd executive director Faris Mohd Yusof said the approval marked a progressive step towards the realisation of Northern Perak's long-term water security strategy by 2030. 'We are pleased to have been entrusted with the opportunity to jointly develop a key component of the NPWSS scheme for our home state of Perak. 'We are committed to ensure the critical delivery of water for the state with a focus on local workforce and community development,' he said. Faris added that the project affirms the group's expertise in water-related infrastructure, citing past projects such as the Skim Bekalan Air Fasa 3 Sungai Selangor and the Smart Tunnel. He added that Gamuda's experience in water treatment plants, distribution networks and tunnelling positions the group well to deliver the essential infrastructure. Gamuda has also been involved in other major water infrastructure developments. These include the RM4bil Sungai Perak Raw Water Transfer Scheme, slated to begin construction in 2026, and the RM1.97bil Sungai Rasau Water Supply Scheme Stage 1, currently ongoing with completion expected by mid-2025. The group also holds a 75% stake in the Ulu Padas hydroelectric project in Sabah, valued between RM3bil and RM4bil, with a scheduled commercial operation in 2030.
The Star
17-07-2025
- Business
- The Star
Gamuda's latest job win to exceed order-book target
CIMB Research said the NPWSS project provides Gamuda with the base to rebuild its water-related recurring earnings streams. PETALING JAYA: Gamuda Bhd 's latest contract win offers recurring income and a turnkey contract role and helps its total order book exceed its target for 2025. CGS International (CGSI) Research estimates the engineering and construction group's order book for the year could stand at about RM47bil, above its in-house target of RM40bil to RM45bil, after it secured a potential RM5bil worth of water treatment and distribution infrastructure jobs in Kerian, Northern Perak, in a joint venture with Perbadanan Kemajuan Negeri Perak (PKNPk). The project is part of the broader Northern Perak Water Supply Scheme (NPWSS), which aims to transfer 1.5 million litres per day (mld) of raw water from Sungai Perak to the Bukit Merah Dam. Meanwhile, 500 mld of the supply will be allocated to address the immediate irrigation needs of Northern Perak, with the balance to be made available to meet the domestic and industrial demands of Perak. Excess treated water will be sold to Penang. Analysts think the contract win offers Gamuda not just engineering opportunities as the turnkey contractor but also recurring income over some four decades as the developer of NPWSS. CGSI Research noted a PKNPk-Gamuda JV (50:50) will undertake this project on a privatisation basis with a minimum 40-year operation period and take its year-to-date job wins to RM23.4bil. 'Gamuda estimates the pre-tax margin for the project to be around 10% to 12%, within the range of its Malaysian infrastructure projects. 'This will be positive for improvement in its construction margin trajectory, where we expect a more meaningful recovery in financial year 2026 (FY26). 'This is when its local projects (39% of order book as of June 2025) move away from the shallow part of the S-curve recognition,' the research house stated in a report on the company. It added the award could be seen as a signal that the government may look to expedite project flows. Furthermore, CGSI Research maintained its 'add' call on the stock with a sum-of-parts (SOP) derived target price (TP) of RM6 a share. RHB Research, however, believes any formal awards pertaining to the NPWSS project will likely take place next year. Hence, it has made no changes to its earnings estimates for Gamuda, as there were no changes in its order book while awaiting further details such as tariffs, project tenure and approval from the relevant authorities related to the NPWSS project. It made no changes to its 'buy' call on Gamuda nor to its SOP-derived TP of RM5.86 a share. CIMB Research said the NPWSS project provides Gamuda with the base to rebuild its water-related recurring earnings streams following the disposal of its 40% stake in Syarikat Pengeluar Air Selangor Sdn Bhd several years ago. It kept its 'buy' recommendation on Gamuda with an unchanged TP of RM5.50 a share.
The Star
16-07-2025
- Business
- The Star
Gamuda tie-up with PKNPk secures Perak water treatment project
The Rasa and Bukit Badong water treatment plants - examples of Gamuda's proven expertise and extensive track record in delivering complex water infrastructure in Malaysia and Vietnam KUALA LUMPUR: Gamuda Bhd in partnership with Perbadanan Kemajuan Negeri Perak (PKNPk) has accepted an appointment by the Perak state government to develop and operate water treatment and distribution infrastructure in Kerian. In a statement, the construction and engineering group said the project forms part of a strategic initiative by the Perak state and Federal governments to address long-standing water shortages for irrigation, domestic and industrial use in the region. The initiative - dubbed the Northern Perak Water Supply Scheme (NPWSS) - has a total development value of RM5bil. "The NPWSS scheme is designed to transfer 1,500 million litres per day of raw water from Sungai Perak to the Bukit Merah Dam. "Of this total, 500MLD of raw water will be for the immediate irrigation needs of Northern Perak with the balance made available for treatment to meet the domestic and industrial demands of the State," it said. According to Gamuda, its joint venture with PKNPk, the state's development agency, will undertake the development and operation of water treatment and distribution infrastructure in the Kerian district in Northern Perak. It will also supply treated water to the Kerian Integrated Green Industrial Park (KIGIP) and sell the excess treated water to Penang. The undertakings will be on a privatisation basis with a minimum 40-year operation period, it added. The development is subject to approvals from the relevant regulatory authorities. Gamuda Engineering executive director Faris Mohd Yusof said the approval marks a progressive step towards the realisation of Northern Perak's long-term water security strategy by 2030. "We are pleased to have been entrusted with the opportunity to jointly develop a key component of the NPWSS scheme for our home state of Perak. "We are committed to ensure the critical delivery of water for the State with a focus on local workforce and community development," he added.
New Straits Times
16-07-2025
- Business
- New Straits Times
Gamuda-PKNPk JV secures Kerian water treatment project from Perak govt
KUALA LUMPUR: Gamuda Bhd, in collaboration with the Perak State Development Corporation (PKNPk), has received a letter of appointment from the Perak state government for the development and operation of water treatment and distribution infrastructure in Kerian. In a filing with Bursa Malaysia today, the engineering and construction group said under the terms of the appointment, the PKNPk-Gamuda joint venture (JV) would carry out the project on a privatisation basis with a minimum 40-year operation period. The scope includes the development and operation of water treatment and distribution infrastructure in the Kerian district, as well as the supply of treated water to the Kerian Integrated Green Industrial Park (KIGIP) and sale of excess treated water to the neighbouring state of Penang. The infrastructure forms part of the broader Northern Perak Water Supply Scheme (NPWSS) which has a total development value of RM5 billion, a strategic initiative by the Perak state and federal governments to address long-standing water shortages for irrigation, domestic and industrial use in the region. "A privatisation agreement is expected to be finalised within 90 days from the date of the JV's appointment to ensure the objective of completing the scheme by 2030 can be achieved," said Gamuda. The development is subject to approval from the relevant regulatory authorities, it said. PKNPk is a statutory body established by the Perak state government in 1967 under the Perak State Development Corporation Enactment No. 3, 1967. It serves as the state's principal agency for driving socioeconomic development and investment. Gamuda said that it would keep Bursa Malaysia Securities Bhd informed of any further material developments. — BERNAMA
