PETALING JAYA: Ranhill Holdings Bhd’s subsidiary Ranhill SAJ Sdn Bhd is undertaking several measures to reduce non-revenue water (NRW) in Johor to 5% by 2025 from the current 24.12%, including a seven-year programme to address physical and commercial losses.
Ranhill SAJ operates and maintains a combined production capacity of 1,827 millions of liters per day (mld).
It has reduced the state’s NRW from 45% in 1999 to 24.12% at present, with a physical loss of only 17.5 cu m per kilometre of pipe per day.
The group said in a statement that Ranhill SAJ and Pengurusan Aset Air Sdn Bhd (PAAB) have allocated RM3.4 billion over the next seven years for the “Accelerated NRW Reduction Programme” in Johor in a bid to address physical and commercial loses.
Ranhill SAJ will repay the capital expenditure from PAAB through a lease rental arrangement with the company. The programme has been approved in principle by the Suruhanjaya Perkhidmatan Air Negara (SPAN).
There are also approximately 94 pipe rehabilitation projects to be completed by Ranhill SAJ by 2020.
“While Ranhill SAJ is already in full compliance with meeting the KPIs set by SPAN to reduce water loss in the state and has achieved the lowest NRW per kilometre of pipe in Malaysia, we must now fast track the reduction as demand for water continues to rise in tandem with growth in population, industrialisation and property development projects in Johor,” said Ranhill president and CEO Tan Sri Hamdan Mohamad.
“We have identified areas, where physical and commercial losses are most evident and these will be addressed by the programme. Given our reputation for consistency and reliability, we are confident of sustainably managing our water resources to meet our 5% NRW target by 2025,” he added.
As Ranhill SAJ accounts for approximately 77% of the Ranhill Group’s total revenue, the seven-year programme is expected to contribute positively to Ranhill SAJ’s as well as the group’s bottom line in the long term.