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Published: Wednesday February 26, 2014 MYT 1:32:00 PM
Updated: Wednesday February 26, 2014 MYT 4:01:53 PM

Putrajaya and Selangor sign MoU on restructuring of state's water industry

PUTRAJAYA: The Federal Government and Selangor state government have signed a memorandum of understanding on the restructuring of the water industry in Selangor, which includes construction of the much-needed Langat 2 water treatment plant.

Through the MoU, the Federal Government has agreed to the state's acquisition of four water concessionaires, with a RM9.65bil sum as compensation to be paid to the four companies.

The Federal Government also agreed to allow the Selangor government to manage water supply in the state through Kumpulan Darul Ehsan Berhad, a state wholly-owned company.

The Selangor government, in return, has agreed to issue a Development Order for the construction of the Langat 2 water treatment plant and its distribution system.

The MoU was signed at the Perdana Putra Building here on Wednesday.

The Federal Government was represented by Energy, Water and Green Technology Minister Datuk Seri Dr Maximus Ongkili while Selangor MB Tan Sri Khalid Ibrahim represented the Selangor state government.

Prime Minister Datuk Seri Najib Tun Razak and Deputy Prime Minister Tan Sri Muhyiddin Yassin witnessed the signing.

Tags / Keywords: Dry spell, Water shortage, Water rationing, Water industry restructuring, Selangor

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