Wednesday September 12, 2012
Ranhill’s sees generating RM976mil from China water concessions
By CHOW HOW BAN
TIANJIN: Ranhill Bhd expects to generate a total revenue of two billion yuan (RM976mil) from the nine water concession projects that the company is undertaking in China.
Among the nine projects four of them are newly-inked deals which will provide a 1.41 billion yuan (RM687mil) boost to the company's earnings.
The water concessions are built and run by Ranhill Water Technologies Sdn Bhd, a wholly-owned subsidiary of Ranhill Utilities under the group.
Ranhill Water Technologies chief executive officer Koh Boon Sian said as the company was mainly using equipments imported from Malaysia for the water and wastewater treatment plants, about half of the total revenue would contribute to Malaysia's total exports of equipments and services.
“The revenue stream has been very stable because our water and wastewater treatment facilities are built in industrial parks. The park operators are good paymasters.
“There is a clear directive from the Chinese central government to emphasise environment protection. Be it the city mayor or industrial park director, they will do all they can to protect the environment.
“Our company then works hand-in-hand with them to ensure the sustainable development of water resources in the area,” he said after inking two of the latest water deals here in China yesterday.
Ranhill Water Technologies entered an investment agreement with the Changfeng Heavy Industrial Park in Hefei, Anhui province, for a build-operate-and-transfer project comprising a 20 million litres per day (MLD) wastewater treatment plant and a pumping station.
The company will build another reservoir, a 100MLD potable water treatment plant, and two 50MLD wastewater treatment plants as part of an expansion of the Xinxiang Industrial Park in Henan province.
The other two new projects also involve building potable and wastewater treatment facilities in the Lujiang Industrial Park in Hefei and in northwestern Ningxia Hui autonomous region's Zhongwei city.
Koh said the four new projects would commence in the next six months after approvals were granted for their design plans.
He said the company was looking for more water projects in western China following its first in Ningxia, as the water management market in eastern and southern China was rather saturated.
The 100MLD potable water treatment plant in Jiangxi province's Yichun city was the first water project undertaken in China by Ranhill Water Technologies along with its joint-venture partner Pinang Water Ltd in 2005.
Ranhill Bhd has other water projects in Sri Gading in Johor, Amata Nakorn Industrial Park in Thailand and Madinah city in Saudi Arabia.