Wednesday, 06 November 2019
Smartpipe Technology Sdn Bhd and Kedah State Investment Arm in JV to Provide NRW Solutions
- JV to remedy non-revenue water situation in Kedah
- JVCO to mobilise sustainable development plan to ensure sustainability of water supply for the people
Managing Director/Group Chief Executive Officer of Perangsang Selangor, Ahmad Fariz Hassan (front right) and Chief Executive Officer of MBI Kedah, Dr Mahadi Mohamad (front left) exchanging the document of the JV agreement, witnessed by the Menteri Besar of Kedah, YAB Dato’ Seri Utama Hj Mukhriz Tun Mahathir (centre).
Alor Setar, 6 November 2019 – Smartpipe Technology Sdn Bhd (“Smartpipe”), a wholly owned subsidiary of Kumpulan Perangsang Selangor Berhad (“Perangsang Selangor” or “the Group”, Bursa: 5843; Bloomberg: KUPS:MK; Reuters: KPSB.KL) has formed a joint venture (“JV”) with Menteri Besar Kedah Incorporated (“MBI Kedah”) to undertake non-revenue water (“NRW”) and other water-related projects to remedy the NRW situation in Kedah. This is in line with Syarikat Air Darul Aman (“SADA”)’s mission to address the situation via sustainable infrastructure planning and development that will lead to attaining the stability of water supply in the state.
Kedah remains as one of the states in the country with high NRW percentage, averaging at 47.4% between years 2015 to 2018. As at August 2019, its NRW reading stood at 49.3%, which was 1.9% higher than the historical average. SADA has identified ageing water pipeline network as the main cause of the high reading in the state.
MBI Kedah is the state of Kedah’s investment arm, with the primary objective to grow the state’s economy for the prosperity and benefits of its people via sound businesses and infrastructure projects. In addition to being tasked with driving progressive changes in Kedah’s core and ancillary sectors, MBI Kedah is also missioned to promote partnerships with other corporate or business entities in strategic areas – such as the water infrastructure.
Smartpipe, a subsidiary of Perangsang Selangor, is an integrated water solutions provider, specialising in pipe rehabilitation as well as pipe replacement works. In Malaysia, Smartpipe is the sole company authorised by Netherlands-based Wavin Overseas B.V., to sell and install Compact Pipe® and Wavin’s other pipe rehabilitation products. The product line boasts competitive environmental, social and long-term economic and technological advantages over currently available products. Combining its expertise in trenchless pipe rehabilitation with the experience in the conventional pipe replacement works, Smartpipe stands ready to help address the NRW issues in the country.
The JV company, which has been incorporated as Darul Aman Water Solutions Sdn Bhd (“DAWS”), will be 51% held by MBI Kedah and 49% owned by Smartpipe. DAWS will emerge as the state’s NRW solutions provider, expected to mobilise NRW and water-related projects in Kedah, restoring the sustainability of water supply for the state. As Kedah records a very high use of asbestos cement (“AC”) pipes, most of which is aging, the most immediate initiative is to either rehabilitate or replace them. Of the 13,159 kilometres-long water pipeline network in Kedah, 8,942 kilometres – or approximately 67.9% - of it is of AC pipes.
The JV agreement was signed by the Chief Executive Officer of MBI Kedah, Dr Mahadi Mohamad and Managing Director/Group Chief Executive Officer of Perangsang Selangor, Ahmad Fariz Hassan, and witnessed by Menteri Besar of Kedah, YAB Dato’ Seri Utama Hj Mukhriz Tun Mahathir, Chairman of State Public Works, Water Supply, Water Resources and Energy, YB Dato’ Zamri Yusuf, Chairman of Perangsang Selangor, YM Raja Shahreen Raja Othman and Chairman of Smartpipe, Madam Rita Benoy Bushon.
Perangsang Selangor’s Managing Director and Group Chief Executive Officer, Ahmad Fariz Hassan said,
“We are very honoured to be given this great opportunity to play a pivotal role by the state Government, in paving the way to ensure the sustainability of water supply in the state. With Smartpipe’s proven technical expertise in the areas of pipe rehabilitation and replacement, we are confident that Darul Aman Water Solutions Sdn Bhd will be able to gradually tame the NRW situation in Kedah to a more manageable levels in the next few years, as planned. Guided by MBI Kedah’s vision and supported by Smartpipe’s expertise, let’s be assured that DAWS will be instrumental in carrying out one of the major sustainable development plans, that is to provide the solutions for NRW that we are all in dire need of,” Ahmad Fariz concluded.
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About Kumpulan Perangsang Selangor Berhad (www.kps.com.my)
Incorporated on 11 August 1975, Kumpulan Perangsang Selangor Berhad (“Perangsang Selangor” or “the Company” or “the Group”) is a public limited liability company listed on the Main Market of Bursa Malaysia Securities Berhad under the Industrial Products & Services Sector. Perangsang Selangor has core investments in the Manufacturing sector, as well as businesses in the Trading, Licensing and Infrastructure sectors. While strengthening our business to optimise returns, Perangsang Selangor is committed to providing significant contributions towards sustainable development in the areas of economic, environment and social for the benefits of all stakeholders.
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