KUALA LUMPUR (April 9): Engineering company AWC Bhd (KL:AWC) has secured a 10-year concession worth RM18.4 million to build and operate an automated waste collection system at the newly operational Terminal Bersepadu Gombak (TBG).
TBG, located along the Middle Ring Road 2 near the Gombak Toll Plaza and Gombak Light Rail Transit (LRT) Station, serves as the main transportation hub for services to the East Coast of Peninsular Malaysia, covering Pahang, Terengganu, and Kelantan.
In a statement on Wednesday, AWC said the concession agreement was signed with Landasan Kapital (M) Sdn Bhd and Terminal Bersepadu Gombak Sdn Bhd.
Its group chief executive officer and president Datuk Ahmad Kabeer Mohamed Nagoor said the concession will contribute to the company's recurring income and bolster its environment division’s outstanding order book, which stood at RM163 million as at end-December 2024.
“Securing this concession is certainly a significant milestone for us, as it is a testament to our deep technical expertise and proven track record,” he said.
“More importantly, the concession agreement gives us clear earnings visibility over the next 10 years, further boosting our recurring revenue, which currently stands at approximately 22% of total turnover,” Ahmad Kabeer added.
He said the company remains positive on the growth prospects of its environment division, both domestically and abroad.
“We see automated waste collection as the future of urban infrastructure management, and we are not just managing waste, but we are redefining how modern transportation terminals operate by creating efficient, environmentally friendly solutions for these public transportation hubs,” he said.
The TBG project marks AWC’s second build-operate-transfer initiative. The company’s first was at the Kuala Lumpur International Airport Terminal 2, which has since transitioned into a three-year maintenance contract valued at RM8.9 million.
AWC provides engineering services across four key segments: facilities management, environment, engineering and rail. Its environment arm, Stream Group Sdn Bhd, has completed over 370 automated waste collection projects in Asia and the Middle East.
Shares of AWC dropped eight sen or 11.76% to 60 sen on Wednesday, valuing the company at RM204 million. Year to date, the counter has fallen over 34%.