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WATER TREATMENT, SUPPLY AND DISTRIBUTION

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 treated potable water to large parts of Selangor and Kuala Lumpur.

The Group had previously operated and maintained Pulau Langkawi’s entire water supply and distribution facilities under a 25-year concession, which expired in October 2020. Taliworks Langkawi was 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 O&M 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. The undertaking of the O&M activities managed by Taliworks Langkawi was effective from 1 February 2013 till 31 October 2020. All operations have since been handed over to Syarikat Air Darul Aman Sdn. Bhd., a corporatised body under the 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 the water restructuring exercise undertaken by the State Government of Selangor to consolidate the water industry in the state, Sungai Harmoni entered into the 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. As a condition to operate SSP1, Sungai Harmoni was awarded an Individual License pursuant to Section 9 of the Water Services Industry Act 2006 from SPAN.