KPS enters JV to maintain water pipelines

The construction of pipeline by Syarikat Bekalan Air Selangor Sdn Bhd stretching 15 kilometres from Kerling to Lembah Beringin in Hulu Selangor for folks in Lembah Beringin to be able to get treated water.

KUALA LUMPUR: Kumpulan Perangsang Selangor Bhd (KPS) plans to participate in the non-revenue water (NRW) reduction programme under the Federal Government and Selangor state.

KPS, a subsidiary of Selangor state investment arm Kumpulan Darul Ehsan Bhd (KDEB), told Bursa Malaysia that its unit Nadi Biru Sdn Bhd proposed to invest 51% in the equity of Smartpipe Technology Sdn Bhd (SPT) for RM5.1mil.

SPT is an engineering company offering integrated solutions to water and other utility companies for the maintenance of their pipeline assets in order to reduce NRW.

Dutch firm Wavin Overseas BV has given SPT a licence to market, sell and install plastic pipes systems and other patented products in Malaysia together with the right to use the know-how subject to the terms and conditions set out in the licence agreement signed in November last year. 

KPS said Wavin, established in 1955, had operations in over 25 countries.

“Both parties intend to enter into the business of the marketing, selling and installing of pipes and other products, know-how and technology granted under the licence agreement primarily for the rehabilitation of water mains, drains and sewers,” it said.

The company said the proposed investment would also enable Perangsang Selangor to leverage on its past experience in the water industry, mainly in upstream segment.

“The establishment and execution of NRW reduction programme under Federal Government and Selangor state initiatives and the unique selling points of Wavin’s product which provides competitive advantages over the current available technology could potentially shore up SPT order book for the next five years,” it said.

Last year KPS sold its 90.83% equity interest in Titisan Modal (M) Sdn Bhd, which owns Selangor water concessionaire Konsortium Abass Sdn Bhd, to KDEB's special-purpose vehicle Pengurusan Air Selangor Bhd for RM78.054mil.