Salcon Bhd is eyeing two water concession deals in China and hopes to secure them by year-end, said its CEO and director How See Hock.
He said Salcon had identified the two projects and had begun the negotiation process.
“Things look very promising. The two concessions are located in central China. If we succeed, we would be able to hit 1,000 million litres per day (MLD) in China by year-end,” How said at the groundbreaking ceremony of the Labu water treatment plant here yesterday.
Salcon currently owns and operates seven water concessions as well as wastewater concessions in Shandong, Zhejiang, Fujian and Jiangsu provinces in China, and in Binh An, Vietnam.
Salcon’s order book currently stands at RM1.3 billion with outstanding value of RM600 million.
For the RM84.21 million Labu water treatment plant, How said the first stage would be completed by mid-2011 to supply 52.5 MLD to the Kuala Lumpur International Airport (KLIA) and the surrounding areas of Salak Tinggi, Tampoi, Semenyih and Cheras.
“Thee second stage to supply another 52.5 MLD would be completed by end-2011,” he said. Salcon was awarded the contract by PAAB in May to design and build the water treatment plant, which is part of the KLIA Alternative Water Supply Scheme.
The project encompasses the design, procurement, construction, installation, commissioning, operation and maintenance, training and handover.
The groundbreaking event was officiated by PAAB chairman Datuk Seri Diraja Tajol Rosli Ghazali.
“The project would boost Salcon’s order book to nearly RM1.3 billion and is expected to contribute positively to the earnings of the group,” said How.
This article appeared in The Edge Financial Daily, July 15, 2010.
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