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Wednesday September 11, 2013 MYT 4:03:00 PM
Wednesday September 11, 2013 MYT 6:15:21 PM
by teh eng hock
SHAH ALAM: Negotiations between the Selangor and federal governments on the restructuring of water services industry in the state have reached a "breakthrough", according to Selangor Mentri Besar Tan Sri Khalid Ibrahim.
"We are close. So close that I can now make an announcement that we will complete by year end, and statements on this matter from both the federal and state governments are no longer contradicting each other," he said.
Both federal and state governments have set Dec 31 as a target date to conclude talks.
Khalid said a letter from the Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili, dated Sept 9, stated that they were confident the water services industry restructuring exercise would be completed before Dec 31.
The letter also stated that the Ministry had considered the arguments and facts from the state government, said Khalid.
Khalid expressed his gratitude to Dr Ongkili, who gave a personal commitment to ensure water management would be handed over to the state government in accordance to the Water Services Industry Act 2006.
Khalid said there were two "sensitive areas" in negotiations, which are the valuation of the water concessionaires and the modus operandi of the takeover.
"We see some differences in perception of the valuation, but it is not a situation that will break the arrangement," he said.
On the modus operandi of the takeover, he said the state government is trying to convince the federal government to agree that the water assets and management would be parked under a special purpose vehicle owned by the state government.
The state government had made three bids to take over water management from all four water concessionaire companies in Selangor.
On Feb 20, the state government made a RM9.65bil offer to take over Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Puncak Niaga Sdn Bhd, Konsortium Abass Sdn Bhd and Syarikat Pengeluar Air Selangor Holding (Splash).
Previously, the state government in 2009 made a bid of RM5.7bil but was rejected by all parties. A subsequent offer of RM9.2bil was made in 2011 but was rejected by Puncak Niaga and Syabas.
The federal government holds one golden share in Syabas through the Minister of Finance Inc.
Also part of the talks is the development of the RM3bil Langat 2 water treatment plant, which is a federal project but its construction has to be approved by the state government under the Land Code.
Tags / Keywords:
Government, Water, Selangor, Syabas, Puncak Niaga, Splash, Konsortium Abass, Khalid Ibrahim
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