Bidders for PAAB water project trimmed to 12

By Sharen Kaur
Published in NST on April 26 2010

PENGURUSAN Aset Air Bhd (PAAB) has narrowed down the list of companies that can bid to build a RM2 billion water treatment plant in Hulu Langat, Selangor, to 12 from more than 30 before.

  A source familiar with the plan said PAAB will call for a tender in May or June. The 12 groups are expected to submit a detailed proposal, outlining the framework, costing and design of the project.

"The 1,130 MLD (million litres a day) treatment plant, which will take two to three years to construct, will process the raw water transferred from Pahang to Selangor via a 44.6km tunnel," the source said.

The plant is part of the Pahang-Selangor Interstate Raw Water Transfer Project, which will ease the water shortage problem in Selangor and Kuala Lumpur.

It will be owned by PAAB, a wholly-owned company of Minister of Finance Inc.

The 12 groups are Gamuda and Biwater International, MMC and Salcon, Loh & Loh and UEM Builders, WCT and Sinohydro Corp, LGB Engineering, George Kent and Taliworks.

Others include LBH Group, Puncak Niaga (M) Sdn Bhd, IJM Construction Sdn Bhd, Kumpulan Perangsang Selangor Bhd, Hati Muda Sdn Bhd, Mewah Kota Sdn Bhd and Asia Baru Construction Sdn Bhd.

Business Times understands that the design-and-build project had attracted more than 30 companies, including Japanese and South Korean firms.

The only major contract awarded under the Pahang-Selangor water transfer project is the tunnelling work from Karak in Pahang to Hulu Langat.

A tie-up between IJM Corp, UEM Builders Bhd, Shimizu Corp and Nishimatsu won the RM1.3 billion job.

Once completed, 1,890 million litres of raw water from Sungai Semantan in Pahang will be channelled daily via the tunnel through the Main Range to Sungai Hulu Langat.

Three more contracts are pending, each worth around RM200 million and RM300 million, to construct intake and pumping stations, pipe-laying and to build the Kelau Dam.

The source said the contracts are under technical evaluation and will be awarded by August.

A consortium comprising Loh & Loh Corp Bhd, George Kent (Malaysia) Bhd and Japan's Hazama are expected to win the contract to build the intake and pumping station.

"The pipe-laying contract had attracted 15 bidders but seven have been disqualified as they failed to meet the technical aspects of the project," the source said.

-ENDS-