SAJ Ran­hill’s Johor wa­ter ser­vices li­cence re­newed for 3 years

The Sun (Malaysia) - - MEDIA & MARKETING -

PE­TAL­ING JAYA: SAJ Ran­hill Sdn Bhd’s li­cence as the ex­clu­sive wa­ter ser­vices op­er­a­tor for Johor has been re­newed for three years, from Jan 1, 2018 to Dec 31, 2020.

Ran­hill Hold­ings Bhd, which owns 80% of SAJ Ran­hill, said in a state­ment yes­ter­day the re­newal was rec­om­mended by the Na­tional Wa­ter Ser­vices Com­mis­sion (SPAN) and ap­proved by the Min­istry of En­ergy, Green Tech­nol­ogy and Wa­ter.

“The ap­proval was granted fol­low­ing a rig­or­ous per­for­mance re­view, in com­pli­ance with Sec­tion 17 of the Wa­ter Ser­vice In­dus­try Act 2006 and Sec­tion 7 of the Wa­ter Ser­vice In­dus­try (Li­cens­ing) Reg­u­la­tion 2007.”

Ran­hill said as SAJ Ran­hill ac­counts for about 77% of the group’s to­tal rev­enue, the re­newal is ex­pected to con­trib­ute to SAJ Ran­hill as well as the group’s short- and long-term growth.

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

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

SAJ Ran­hill op­er­ates and main­tains a com­bined pro­duc­tion ca­pac­ity of 1.99 bil­lion litres daily. It has re­duced the state’s non-rev­enue wa­ter, which stood at over 40% in 1999 to 24.7% at end-June 2017, with phys­i­cal loss of only 15.4 m3 per kilo­me­tre of pipe per day.

SAJ Ran­hill’s op­er­a­tion cost of RM498,312 per 1,000 ac­count up to Novem­ber 2017 is well within the key per­for­mance in­di­ca­tor tar­get set by SPAN.

On Bursa Malaysia yes­ter­day, Ran­hill’s share price gained 1 sen or 1.4% to close at 70 sen on 442,000 shares traded.

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