The Ministry of Energy, Water and Communication had awarded the Jelutong Sewerage Treatment Plant to WWE Holdings Berhad. The Jelutong STP, designed with the ultimate capacity of 1.2 million PE is to be constructed on a 14.7 hectares of reclaimed land and will treat the entire raw sewage from Georgetown, Penang.
Prior to invitation by WWE to submit bid for the above-mentioned structures, Asia Baru was at the time carrying out the construction and completion of two (2) Anaerobic Digester Tanks as a sub-contractor for Cipta Wawasan Maju Engineering Sdn. Bhd. (CWM), the process contractor appointed by WWE to carry out the process unit M&E works.
Impressed by Asia Baru’s speed and quality of workmanship in the construction of the digester tanks, WWE invited Asia Baru direct as Main Contractor to submit bid documents in June 2007.
Negotiation on prices ensued and the Letter of Acceptance (LoA) was issued by WWE on 16th August 2006, stipulating the commencement and completion date as 23rd August 2006 and 8th January 2007 respectively. However, due to some onerous clauses in the LoA, request to amend the specific clauses on payment terms and amount of LAD were made and agreed upon by the parties, before the LoA was duly signed and accepted by Asia Baru.
Upon fulfillment of all conditions precedent, the constructional plant and machineries which were being used in the Digester Tank were utilised immediately at the UV Channel on 23rd August 2006 as stated in the LoA. However, for the Liftcore, the possession of site by Asia Baru was delayed by 15 days due to obstruction of materials/piling machineries (owned by others). In short, the Liftcore site could not be taken over because it was not free of encumbrances.
Briefly, the Works under the Contract comprised the construction and completion of the following structures: