Ranhill subsidiary renews Johor water concession for three years

KUALA LUMPUR: Ranhill Holdings Bhd’s subsidiary, SAJ Ranhill Sdn Bhd, has renewed its licence as the exclusive water services operator in Johor for a three-year period commencing Jan 1, 2018.

In a statement, Ranhill said the renewal was recommended by the National Water Services Commission ( SPAN) and approved by the Ministry of Energy, Green Technology and Water. It said since SAJ Ranhill accounted for some 77 per cent of Ranhill’s total revenue, the renewal was expected to contribute to the group’s shortand long-term growth.

Ranhill president and chief executive, Tan Sri Hamdan Mohamad, said the renewal of SAJ Ranhill’s operation licence was a testament to the high level of service that the company has delivered over the years.

“Since SAJ Ranhill migrated to a licensing regime, the company has consistently demonstrated its reliability in fulfilling the key performance indicators ( KPIs) set by SPAN.

“Moreover, SAJ Ranhill has fully complied to meet the KPI to reduce water loss or non-revenue water (NRW) in Johor.

“Johor now has the lowest NRW per kilometre of pipe in Malaysia,” he said.

Moving forward, Hamdan said the company expected to see sustained growth in Johor on the back of an annual increase of 3.7 per cent in water consumption in view of new housing developments, rapid industrialisation and increased commercial activities.

“The group is wholly confident that SAJ Ranhill will continue to deliver a strong performance in the years to come,” he said.

SAJ Ranhill has been the sole provider of water supply services in Johor since 1999, initially under a 30-year buildoperate-transfer concession.

In 2009, the company surrendered its concession and migrated to a new licensing regime in line with the government’s aspiration to promote policy objectives for water supply services through the establishment of a licensing and regulatory framework. — Bernama