Selangor may restructure water supply, says committee

STAR, 8 August 2012

KUALA LUMPUR, Aug 8 — The Selangor government can implement a water supply restructuring scheme as long as it adheres to the Water Services Industry Act 2006, as well as all water concession agreements and laws in force.

The matter was finalised by the Special Cabinet Committee on Selangor Water Issues in its meeting chaired by Deputy Prime Minister Tan Sri Muhyiddin Yassin on August 2.

According to the committee’s secretariat, the decision was in line with the Federal government’s stand not to get in the state government’s way of implementing its desired holistic restructuring model.

However, the secretariat said the implementation of the holistic model would require the state government to take over water concession companies in Selangor.

“Yet, the committee has no plan to interfere with the state government’s efforts to take over equity in the concession companies since it is a commercial transaction between the two parties that should be implemented on willing buyer-willing seller basis,” the secretariat said in a statement here today.

Nevertheless, the secretariat said the federal government, through the Pengurusan Aset Air Berhad (PAAB), would always be prepared to take over the liability and assets of the water concession companies at any time, an offer that had also been extended to other states.

“The committee is also of the opinion that the Selangor government and water concession companies should continue their discussions to finalise the restructuring scheme because the delay has had a big impact on the water services industry in the state,” the secretariat said.

On the implementation of the Langat 2 water treatment plant project, the committee agreed that the tender for the project be offered without waiting for the development from the relevant local authorities.

Until today, the Selangor government had prevented local authorities from issuing the development order for the project. — Bernama