KUALA LUMPUR (Aug 17): Ranhill Holdings Bhd has secured a one-year contract worth RM15.9 million for non-revenue water (NRW) services in Kelantan.

In a statement today, Ranhill said its unit Ranhill Water Services Sdn Bhd (RWS) had received a letter of award for the services contract from Air Kelantan Sdn Bhd.

Ranhill president and chief executive Tan Sri Hamdan Mohamad said Ranhill has always been in the forefront of NRW reduction management, and the contract renewal proved its capabilities in producing tangible results per client's requirements.

The contract was to service the areas of Kota Bharu Utara, Kota Bharu Timur, Kota Bahru Selatan, Bachok, Pasir Mas, Tumpat and Tanah Merah, according to Ranhill.

This project, scheduled to start late August this year, will be covering about 70% of total pipe connections in Kelantan and is expected to reduce NRW by 5.8% from the baseline, which currently stands at 47%.

Hamdan said since Ranhill's involvement in 2013, RWS had managed to reduce the state's NRW level from 56% to 47% (9% reduction) or a saving of 40 million litres daily (MLD).

"This can be translated to RM17.3 million savings per year for the state's water operator.

"As a result of this new contract, we can expect additional savings of RM12 million per year for the state," he said.

RWS was formed in 2005 to focus on the reduction and management of NRW.

To date, RWS has managed to save more than 450 MLD from all its NRW projects, which include Kedah, Melaka, Terengganu, Kelantan and Johor — enough to supply to more than 500,000 households every day.