KUALA LUMPUR (June 3): Pan Merchant Bhd (KL:PMIBHD) said the group has been awarded a RM26.49 million contract as a nominated supplier for the Sungai Rasau Water Supply Scheme (Stage 1) in Selangor.

In a bourse filing, the group said the contract was awarded to its wholly-owned subsidiary PMI-Technology Sdn Bhd by REI OOE Consortium Sdn Bhd, which has been appointed by Gamuda M&E Sdn Bhd — wholly-owned by Gamuda Bhd (KL:GAMUDA) — under the broader water infrastructure project.

Under the appointment, PMI-Technology will supply and supervise the installation, testing and commissioning of filter press equipment and ancillary systems for Process Package 2 of the project.

The works are scheduled to be completed within 17 months.

“The award is expected to contribute positively to our order books and we look forward to more projects to come from the growing investments in Malaysia's water and environmental infrastructure sector,” said Pan Merchant managing director Wong Voon Ten.

In a separate statement, the group said the Sungai Rasau Water Supply Scheme is a strategic water infrastructure development aimed at improving long-term water security and meeting rising demand in Selangor.

It added that Stage 1 of the project is expected to supply up to 700 million litres of treated water per day to the Klang region and increase the state’s water reserve margin by up to 20.9%.

Pan Merchant shares closed down by half a sen or 2.2% at 22 sen on Wednesday ahead of the contract win announcement. At the closing price, the group is valued at RM201.5 million.