Malaysian Insider, 9 February 2011
Khalid Ibrahim said today that Selangor will publish a full report of all water assets in the state by March to ensure that Selangor’s takeover of the state water industry from four water concessionaires is done in a “fair manner.”
The state government had made an offer of RM9 billion for the assets of the concessionaires last month but they had rejected it, calling the offer “ambiguous.”
The move to detail all water assets in the state appears to be a bid to pressure the concessionaires to accept what Mentri Besar Khalid has said is his final offer.
Khalid said that the current deal was “an opportunity for concessionaires to reap high profits. Even in the agreement document, concessionaires are allowed to use the assets without any charge.”
The state government will conduct fixed asset sightings on water treatment plants, pipe supplies and water reservoirs before publishing the report.
The report, which will list down the location as well as individual and collective value of each asset, will also take into account technical details concerning water treatment and management of water in the state.
The state government said last month that it was willing to pay up to RM9 billion for the assets of all four water concessionaires in the state before selling all assets to the federal government.
The national water industry restructuring scheme has been delayed by a dispute over the price of the privatised assets in Selangor, which also provides water to the federal territories of Kuala Lumpur and Putrajaya.
Selangor made the RM9 billion combined offer to the four water concessionaires in Selangor — Puncak Niaga (M) Sdn Bhd (PNSB), Bekalan Air Selangor Sdn Bhd (Syabas), Konsortium Abass Sdn Bhd (ABASS) and Syarikat Pengeluar Air Selangor Sdn Bhd (SPLASH).
Khalid has said that the total water assets in Selangor were currently worth more than RM10 billion, which the previous state administration had never taken into account when agreeing to the privatisation of the water industry in Selangor.
Under the new offer, water concessionaires could bring up any dispute to an international arbitration court.
Selangor, which already owns 80 per cent of the state’s water supply assets, is preparing to take over the remaining assets after Putrajaya said it did not object to direct negotiations between the state government and concessionaires.
Selangor intends to retain management of the water assets, which also cover the federal territories of Kuala Lumpur and Putrajaya. A project to get water from Pahang has also been delayed because of the issue.
The state government has made two previous offers for the water assets. The first offer, RM5.7 billion for assets and equity, was turned down by all four players, while the second RM9.4 billion offer — this time including liabilities — was rejected by Syabas and sister company PNSB.
Both Syabas and PNSB are controlled by Puncak Niaga Holdings Bhd (PNHB) which belongs to executive chairman Tan Sri Rozali Ismail, who is Selangor Umno treasurer and the 31st richest man in Malaysia, according to Forbes.
The two-year water-restructuring saga has been characterised by finger-pointing by the water authorities as well as federal and state governments keen on deflecting blame for the deadlock.
The impasse began soon after parties that formed the Pakatan Rakyat (PR) unexpectedly took control of Selangor, Malaysia’s richest state, in the last general election.
Since then, privatisation plans for the water industry have been put in deep freeze as the federal and state governments engage in what industry watchers have called “excessive politicking”.
Control of Selangor’s water assets is important to PR so it can set tariffs and fulfil its campaign promise of free water for all residents in the state.
- Malaysian Insider
Khalid Ibrahim said today that Selangor will publish a full report of all water assets in the state by March to ensure that Selangor’s takeover of the state water industry from four water concessionaires is done in a “fair manner.”
The state government had made an offer of RM9 billion for the assets of the concessionaires last month but they had rejected it, calling the offer “ambiguous.”
The move to detail all water assets in the state appears to be a bid to pressure the concessionaires to accept what Mentri Besar Khalid has said is his final offer.
Khalid said that the current deal was “an opportunity for concessionaires to reap high profits. Even in the agreement document, concessionaires are allowed to use the assets without any charge.”
The state government will conduct fixed asset sightings on water treatment plants, pipe supplies and water reservoirs before publishing the report.
The report, which will list down the location as well as individual and collective value of each asset, will also take into account technical details concerning water treatment and management of water in the state.
The state government said last month that it was willing to pay up to RM9 billion for the assets of all four water concessionaires in the state before selling all assets to the federal government.
The national water industry restructuring scheme has been delayed by a dispute over the price of the privatised assets in Selangor, which also provides water to the federal territories of Kuala Lumpur and Putrajaya.
Selangor made the RM9 billion combined offer to the four water concessionaires in Selangor — Puncak Niaga (M) Sdn Bhd (PNSB), Bekalan Air Selangor Sdn Bhd (Syabas), Konsortium Abass Sdn Bhd (ABASS) and Syarikat Pengeluar Air Selangor Sdn Bhd (SPLASH).
Khalid has said that the total water assets in Selangor were currently worth more than RM10 billion, which the previous state administration had never taken into account when agreeing to the privatisation of the water industry in Selangor.
Under the new offer, water concessionaires could bring up any dispute to an international arbitration court.
Selangor, which already owns 80 per cent of the state’s water supply assets, is preparing to take over the remaining assets after Putrajaya said it did not object to direct negotiations between the state government and concessionaires.
Selangor intends to retain management of the water assets, which also cover the federal territories of Kuala Lumpur and Putrajaya. A project to get water from Pahang has also been delayed because of the issue.
The state government has made two previous offers for the water assets. The first offer, RM5.7 billion for assets and equity, was turned down by all four players, while the second RM9.4 billion offer — this time including liabilities — was rejected by Syabas and sister company PNSB.
Both Syabas and PNSB are controlled by Puncak Niaga Holdings Bhd (PNHB) which belongs to executive chairman Tan Sri Rozali Ismail, who is Selangor Umno treasurer and the 31st richest man in Malaysia, according to Forbes.
The two-year water-restructuring saga has been characterised by finger-pointing by the water authorities as well as federal and state governments keen on deflecting blame for the deadlock.
The impasse began soon after parties that formed the Pakatan Rakyat (PR) unexpectedly took control of Selangor, Malaysia’s richest state, in the last general election.
Since then, privatisation plans for the water industry have been put in deep freeze as the federal and state governments engage in what industry watchers have called “excessive politicking”.
Control of Selangor’s water assets is important to PR so it can set tariffs and fulfil its campaign promise of free water for all residents in the state.
- Malaysian Insider
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