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WATER TREATMENT, SUPPLY AND DISTRIBUTION

One of Taliworks’ core businesses is in the water supply sector. The business entails (i) an operation and maintenance (“O&M”) contract for the Sungai Selangor Phase 1 Water Treatment Plant (“SSP1”) that supplies treated potable water to large parts of Selangor and Kuala Lumpur, and (ii) the water treatment, supply and distribution system for the entire island of Pulau Langkawi, Kedah.

Sungai Harmoni is the O&M operator of SSP1. The SSP1 O&M Contract, which previously expires in January 2030, has been extended for another seven years to expire in December 2036, following the execution of a new bulk water supply agreement with Pengurusan Air Selangor Sdn Bhd pursuant to Selangor Water Restructuring Exercise.

The water treatment, supply and distribution system in Pulau Langkawi is managed by Taliworks Langkawi under a 25-year concession ending in October 2020. Taliworks Langkawi has been granted an authorisation under Section 192(5) of the Water Services Industry Act 2006 by the National Water Services Commission (“SPAN”) to undertake and carry out operation and maintenance activities under the Langkawi Water Supply Privatisation Agreement dated 7 October 1995 and the Supplemental Agreements dated 4 August 1999, 22 July 2001 and 1 August 2004 effective from 1 February 2013 to 31 October 2020.

These two companies manage a total of 6 water treatment plants with a combined design operating capacity of 1,047 million litres per day (Sungai Harmoni: 950 million litres per day; Taliworks Langkawi: 97.0 million litres per day).