Gamuda bags processing plant project RM1.97bil

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PETALING JAYA: Gamuda Bhd has been awarded a RM1.97 project from Pengurusan Air Selangor to design and construct the proposed Sg Rasau Water Treatment Plant as the prime contractor.

The contract win brings the value of the engineering and construction company’s construction order book to RM14.4 billion, a new record for the group.

“The Rasau water supply system is expected to produce up to 700 million liters of drinking water per day in the Klang region by the first stage of completion in 2025,” Gamuda said in a statement yesterday. .

This water supply system is expected to increase the water supply reserve margin to nearly 21% by the end of June 2025. It has also been estimated that without this system, the current water supply reserve margin water in Klang would drop nearly 2% by 2024.

Gamuda will take possession of the site in mid-July and is expected to be completed by June 2025.

With its engineering expertise in the design and construction of dams and water treatment plants at the local level, Gamuda is responsible for building a water intake structure with a capacity of 1,400 million liters per day (mld) to draw water from the old mining basins of Taman Permai in Puchong.

The scope of the works obliges it to also build a 700 mld sewage treatment plant near Tanjung Dua Belas, a double pipeline 2.4 m in diameter as well as two air bridges crossing two main highways.

Recent analyst reports have indicated that Gamuda is targeting a construction backlog of RM25bil by fiscal year 2023 (FY23).

The company is set to bid for the multi-billion ringgit MRT3 line project, which is expected to be tendered in August.

Gamuda was awarded a transport project worth A$1.35 billion (RM4.12 billion) by the New South Wales government last month.

Funded by the Australian and NSW governments with the aim of ensuring a better travel and journey experience, the project is a collaboration between the joint venture Ferrovial Construction Australia and Gamuda Australia (JV).

The group also has a joint venture with Wai Fong Construction Pte Ltd to design and construct the S$467 million (RM1.5 billion) Defu Station and Tunnel project for the Land Transport Authority of Singapore. .

The project, which is expected to be completed by 2030, will form part of Singapore’s 29 km Cross Island Line (CRL) rapid transit (MRT) line. The CRL is Singapore’s eighth MRT line.

Gamuda is in the process of selling its toll roads for RM5.5bil to Amanat Lebuhraya Rakyat which is expected to be completed by the end of August according to reports.

The gains from the sale are expected to result in a special dividend of 38 sen per share for Gamuda shareholders, analysts wrote after a quarterly conference call with its management.

Gamuda reported a net profit of RM221 million in its third quarter ended April 30, boosted by a better performance of its real estate business in Vietnam (the Caledon City project) and cost savings from the MRT2 project it executed.

The company’s net profit for the nine months was RM551 million, up 47% year-on-year and beating analysts’ expectations. Gamuda shares closed three sen lower at RM3.55 on Friday.

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