By Khairie Hisyam
A consortium comprising MMC Corp Berhad, water firm Salcon Berhad and construction player Ahmad Zaki Resources Berhad (AZRB) has bagged the RM1 billion Langat 2 construction job for the first phase.
In separate regulatory filings today, all three companies said their joint venture vehicle for the project, Salcon MMCB AZSB JV Sdn Bhd, was awarded the job for package 2A, which entails the construction and completion of 1130 mld (million litres per day) Langat 2 water treatment plant, via a letter dated April 16, 2014.
The package is the first phase of the proposed development of Langat 2 water treatment plant and water reticulation system in Selangor Darul Ehsan/Wilayah Persekutuan Kuala Lumpur.
Each JV partner received the acceptance letter from Pengurusan Aset Air Berhad (PAAB) today, which said that the project’s duration would be 36 months and that the contract sum is RM993.9 million for this phase.
The entire Langat 2 project is estimated to be worth RM4.1 billion. Phase 2 is expected to provide another 760 mld of treated water, pushing Langat 2’s total capacity to 1,890 mld.
Salcon MMCB AZSB JV Sdn Bhd is 36% owned by Salcon via a subsidiary, while MMC and AZRB each has 34% and 30% equity respectively through their subsidiary companies. PAAB, a national water asset company, is wholly owned by the Ministry of Finance.
At 2.18pm, MMC was 1 sen up at RM2.81 while Salcon dipped 5 sen to 82 sen per share. AZRB declined half a sen to 76 sen per share.
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