Indonesia-based water treatment firm Moya Holdings Asia said its subsidiary PT Aetra Air Jakarta, together with partner PT Medco Gas Indonesia, has been awarded the tender for a water supply system in Semarang in central Java, by the city's municipal water company.
Aetra Air and Medco Gas will set up a new project company, owning 75 per cent and 25 per cent interest in it, respectively. This entity is expected to sign a cooperation agreement with the municipal water company by next month.
The build-operate-transfer project has a 25-year concession period, beginning from the date of commercial operation. Its scope covers the design, financing, building, operation, maintenance and transfer of the water supply system, consisting of a new water treatment facility, a transmission pipeline, one main reservoir and two distribution reservoirs.
Construction will start next April and is expected to be completed within two years. Moya said on Wednesday evening, after the market closed, that it expects the project "to further expand and strengthen its business in the water treatment industry in Indonesia".
The project is not expected to have any material impact on Moya's consolidated net tangible assets per share or earnings per share for the current financial year ending Dec 31 this year.