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Management role for private sector
VICHAYA PITSUWAN
Universal Utilities Co (UU), a subsidiary of the SET-listed Eastern Water Resources Development and Management (East Water), aims to improve its revenue through an increased presence in the regional market by bidding for contracts abroad.
According to Pairoj Sattayasansakul, the UU managing director, Malaysia holds potential because the government has completed an extensive refurbishment of the water network and is considering inviting the private sector to help run the system.
"In making a presence overseas, we have to keep eyes on opportunities," said Mr Pairoj. "Now we are trying to make ourselves more familiar with the Malaysian water service industry and plan to introduce our expertise, so that we can make it happen."
According to Mr Pairoj, the Malaysian government plans to spend 28 billion ringgit or approximately 316 billion baht to manage water resources, expand the water service to cover 99% of the total population, and reduce water loss levels to 38% by 2040 from 41% at present.
UU has already registered with the Malaysian government as an interested participant in a bid, which is expected to take place next year.
More details will be announced about prospects for Malaysia once talks with potential partners take place and the company reviews the possibility of winning the bid.
"Our only strong competitor is Manila Water Co of the Philippines," Mr Pairoj said. "For the [Malaysian] project, we don't need to raise more funds. We would require working capital of just about 20% of the project value."
The company expects to see a net profit of 100 million baht this year, a 20% increase from last year, on revenue of 600 million baht.
Net profit will be slightly lower than expected due to energy costs and a delay in a Vietnamese project.
UU won a long-term water loss management project worth 600 million baht in Vietnam early this year but the project was closed due to legal impediments.
The Vietnamese authorities selected the company in an open bid based on technology and the potential to cut as much water loss as possible.
However, Vietnamese law requires officials to accept the cheapest offer and UU was undercut by other bidders. The company is now waiting for the Vietnamese government to amend the law and then reopen the bidding.
For next year, UU plans on spending 200 million baht on existing projects. It also plans to invest 600 million baht to improve water supply and services in Samui, where it currently supplies 2,500 cubic metres daily while demand is up to 8,000 cubic metres.
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