RM4bill Langat2 water treatment plant project

• Selangor Mentri Besar has promised to allow the Federal Government (FG) to build the Langat2 water treatment plant (WTP), part of the Pahang-Selangor Interstate Water Transfer Project (PSIWTP). Expected to be completed by 2014.
• Once written approval from the Selangor State Government (SSG) is obtained, the FG will tender out the contracts for the construction of the Langat2 WTP sometime in January or by end-February.
• Selangor water asset consolidation issue is now more likely to be resolved because the Langat2 WTP would be consolidated from four different water concessionaires to a sole entity in future.
• Who’s to build the plant. According to Business Times, 12 bidders had been shortlisted for the construction of Langat2 WTP. These companies include: 

1. Gamuda (BUY;TP RM4.78)-Biwater International, 
2. MMC-Salcon (BUY;TP RM0.80), 
3. Loh & Loh-UEM, 
4. WCT (BUY;TP RM3.66)-Sinohydro, 
5. LGB Engineering,
6. George Kent, 
7. Taliworks (BUY;TP RM1.60), 
8. LBH Group, 
9. Puncak Niaga (BUY; TP RM3.85),
10. IJM (Neutral: TP RM6.60), 
11. Kumpulan Perangsang Selangor, 
12. Hati Muda SB, Mewah Kota SB, Asia Baru Construction SB. 

• Size of the Langat 2 WTP at 1130MLD in capacity in the first phase, and with a total 1890MLD upon completion of the second phase.
• Expect a few names to be awarded distributed contracts. 
• Gamuda is likely to undertake the project because the company intends to focus its resources solely on the MRT project.