Kumpulan Perangsang Eyes Water Project And More

SHAH ALAM, June 15 (Bernama) -- Water management company Kumpulan Perangsang Selangor Bhd (KPS) plans to grow its water business locally and abroad through its expertise in the sector, executive chairman Datuk Abdul Karim Munisar said today.

KPS, he added, is looking to secure the Langat 2 project, to migrate water from Pahang to Selangor initiated by the government, as well as develop water resources involving groundwater and surface water schemes.

"We have come out with a feasibility study. We also have the expertise and financial strength to undertake the Langat 2 project. We have placed our company well in securing the project," he told reporter after the company's annual general meeting here.

According to Abdul Karim, the company had worked on the Langat 2 project proposal since 1999 and has allocated about RM5 million to conduct the technical and feasibility studies.

Asked when the company will secure the Langat 2 project, he said that depends on the authorities.

"The water business contributes 60 per cent to the group's revenue and the company produces over 120 MLD (millions of litres per day). With the Langat 2 project, our water production will double," he added.

Abdul Karim said KPS' acquisition of Konsortium ABASS in May last year is expected to contribute more than RM100 million or 40 per cent to its revenue from this year.

ABASS is the water concessionaire for the Sungai Semenyih Water Supply Scheme.

KPS is also eyeing two infrastructure projects in West Sumatera, Indonesia - an independent hydro power plant (IPP) with 10 megawatt output capacity worth RM50 million and the 150-km first phase of a toll road project worth RM600 million.

"We are carrying out feasibility studies on the IPP project and the toll road between Pekan Baru and Dumai," he added.

The company is also working with another state government on a potential mining project, but he declined to elaborate.

Asked about market talk on KPS' plans to acquire a 70 per cent stake in Syarikat Bekalan Air Selangor (Syabas) which supplies water in the state, Abdul Karim said: "It is not proper for me to comment yet."

KPS posted a pre-tax profit of RM28.3 million in the financial year ended Dec 31, 2006 from a pre-tax loss of RM124 million in 2005 as revenue rose to RM378.64 million from RM308.88 million.