46 Performance Revi ew 02 Sect ion Ranhi ll Ut i l i t i es Berhad Ranhill contributes to water supply sustainability for the benefit of mankind and environment through efficient water network management services specialising in Water Loss Reduction Ranhill Water Services Sdn Bhd (“RWS”) is a leader in NRW management. With a highly skilled workforce of more than 450 trained water and NRW management professionals. The company’s integrated capabilities comprising in-depth technical consultation, tailored NRW management activities and NRW related civil works distinguishes its competitive edge and value proposition. In addition, internally developed NRW Management systems such as AquaSMART provides RWS with increased efficiency and enhanced capabilities. In recent years, RWS has diversified its business to include pipe rehabilitation works as one the services offered. RWS’ revenue declined in 2022 due to several factors. Among these were lower Johor Pipe Rehab 1 projects undertaken (and therefore reduced revenue recognition). This was due to delays in the approval of work permits from local authorities. There was also lower contribution from the Johor Phase 7 project due to slow progress of onsite, notably during the commencement phase of the project in January 2022. Similarly, revenue recognition from the Pahang AquaSmart and Lower Muar Rising Pipe projects due to delay in works had affected overall revenue performance. Besides delays in approvals from local authorities for pipe replacement and rehabilitation works, another issue faced was the lack of capable contractors to undertake such works. The COVID-19 pandemic had affected many small to medium sized contractors – impacting their financial, technical and operational capacity. Many were unable to meet project criteria and specifications necessary for participation. Despite the challenges faced, RWS was still successful in adding an additional 25 MLD saved from the progress achieved on existing NRW projects in Johor. This brings the total track record of NRW saved to 751 MLD from projects undertaken in Malaysia and Saudi Arabia. PROJECTS IN JOHOR Under the PR1JB ( Johor Rehab) programme, RWS achieved 95.3% physical progress with financial progress standing at 59.2% as at end FY2022. For rehab 2020, 2021 and 2022, RWS is developing the list of areas for pipeline rehabilitation and repair works as well as estimated costs. The company is completing its third pipe replacement contract in the Johor Bahru district involving over 40 km of old pipes and over 48,000 customer connections. MANAGEMENT DI SCUSS ION & ANALYS I S
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