KUALA LUMPUR (Dec 27): Ranhill Utilities Bhd has been awarded a 31.95 million baht (approximately RM4.01 million) contract to upgrade a wastewater plant in Amata City Industrial Estate, Rayong, Thailand.
In a filing with the bourse on Monday (Dec 27), the group said its indirectly-owned subsidiary AnuRAK Water Treatment Facilities Co Ltd secured the contract from Amata Water Co Ltd to upgrade the wastewater treatment plant’s capacity from 15 million litres to 20 million litres per day.
“This contract is for the upgrading of the existing wastewater treatment plant, developed under the Build-Operate-Transfer concept for a 30-year concession period, starting from Nov 1, 2013 until Oct 21, 2043.
“The wastewater tariff under the contract is 9.35 baht per m3 (approximately RM1.173 per m3) with a minimum offtake level of 13,000 m3 per day,” the group said.
Ranhill noted that the construction period of the wastewater facility upgrade is stipulated to take six months, pursuant to the contract, starting from Dec 24, 2021 and is expected to be completed by June 24, 2022.
“Amata P4 upgrading project meets our targeted growth plans and enhances our presence and augurs well with our objective of expanding into long-term regulated asset business in Thailand.
“Apart from contributing to Ranhill’s growth model in the region, the award of this upgrading project also reflects the quality of services and the dedicated technological solutions for water and wastewater that we can draw on to assist countries in this region to meet their long-term environmental and industrial challenges.
“The industries will also be able to enjoy long-term economic benefits of treated potable water supply and wastewater treatment,” it added.
The group said the contract is expected to contribute positively to the revenue and earnings of the group when the contract becomes operational in June 2022.
“The investment is expected to yield a project internal rate of return of 15.16% and equity internal rate of return of 18.28% at group level,” it added.
At noon break on Monday, Ranhill stood unchanged at 53.5 sen, giving the group a market capitalisation of RM686.9 million.