Water tariff hike in Johor put off pending talks

NST, 2008/12/20

Datuk Shaziman Abu Mansor says cabinet to discuss takeover of Johor water assets

PUTRAJAYA: The people of Johor may not have to put up with a 18.9 per cent hike in water charges next year.

This is because talks aimed at handing over the state's water assets to the Federal Government have started, and if the handover takes place, the concession agreement providing for the increase in the water tariff would be nullified.

The 30-year agreement was signed by the state and SAJ Holdings, a water company.

Energy, Water and Communications Minister Datuk Shaziman Abu Mansor said the scheme to take over SAJ Holdings by Pengurusan Aset Air Berhad (PAAB), a water asset management arm of the Finance Ministry, would be brought to the cabinet for discussions next month.

"However, in the meantime, the water tariff hike will be put off until a firm decision is reached," he said yesterday.
If SAJH is taken over by PAAB, it will be managed by the National Water Services Commission.

SAJH supplies water to 861,698 customers and water tariffs in the Johor are the highest in the country.

The Malacca government signed off their water assets to PAAB last week and Shaziman had earlier proposed to the Selangor government to hand over their water companies as well.

He said that it was part of the government's plan to standardise all water schemes in the country.