WATER TREATMENT AND SUPPLY

One of Taliworks’ core businesses is in the water supply sector. The business entails an operations and maintenance (“O&M”) contract for the Sungai Selangor Water Treatment Plant Phase 1 (“SSP1”) that supplies potable water to large parts of Selangor and Kuala Lumpur. Total daily treated water production of SSP1 is almost 20% of total treated water requirement of Klang Valley and Selangor.

The Group had previously operated and maintained Pulau Langkawi’s entire water supply and distribution facilities under the Langkawi Water Supply Privatisation Agreement with the State Government of Kedah. Taliworks Langkawi was granted a 25-year concession to undertake and carry out O&M activities from 7th October 1995 to 31st October 2020. All operations have since been handed over to Syarikat Air Darul Aman Sdn. Bhd., a corporatised body under the State Government of Kedah.

Sungai Harmoni Sdn. Bhd. (“Sungai Harmoni”) is the O&M operator of SSP1 with a combined design operating capacity of 950 million litres per day. As part of a water restructuring exercise undertaken by the State Government of Selangor to consolidate the water industry in the state, Sungai Harmoni entered into a Bulk Water Supply Agreement in 2019 with Pengurusan Air Selangor Sdn. Bhd. (“Air Selangor”) in which its SSP1’s O&M contract was extended for an additional 7 years to December 2036. To operate SSP1, Sungai Harmoni was awarded an Individual License pursuant to Section 9 of the Water Services Industry Act 2006 from the Suruhanjaya Perkhidmatan Air Negara (“SPAN”).