PNHB: Resolve Selangor's water industry to avoid dry taps

SHAH ALAM: The issues related to restructuring of the water industry in Selangor needs to be resolved at the soonest to avoid taps running dry in the state with water reserves at below five per cent.

"We need the Langat 2 now and additional water supply as reserves are very low," said Syabas and Puncak Niaga Holdings Bhd (PNHB) executive chairman, Tan Sri Rozali Ismail. 

Langat 2 is a major water supply project for Selangor and Kuala Lumpur. It is expected to cater to the state's water supply needs up to 2025.

A further delay in resolving issues between Selangor and the federal government will put a strain on water reserves in the state as well as bring about serious economic implications, Rozali opined.

"It will affect other developments as well, including the Langat 2," he told reporters after officiating the 9th Annual General Meeting of the Water Association of Selangor, Kuala Lumpur and Putrajaya (SWAN) here today.

 He said the Hybrid Off River Augmentation System project by the Selangor government is only a short-term measure to ensure adequate water supply, while Langat 2 is needed to avoid a shortage over the longer term.

He added that Selangor and the federal government are still negotiating to fulfill certain terms and conditions under the sale and purchase agreement signed between both parties on Nov 11, 2014.

The date to finalise the proposed takeover of the water concession from Puncak Niaga (M) Sdn Bhd (PNSB)and Syabas by the state government has been delayed thrice.

It was initially set to be finalised on Feb 9, and later extended to March 9, and then to April 9. The latest date is May 11.

"If both parties fail to resolve the water restructuring process by May 11, I have to bring the matter up with the board of directors for a further extension," said Rozali.

"As the owner of Puncak Niaga and Syabas, we have agreed to the takeover of water assets by the Selangor government. We now need somebody to run the company without any conditions and further delay," he added. 

PNHB had agreed to sell its unit, PNSB, and 70 per cent-owned Syabas to Pengurusan Air Selangor Sdn Bhd for RM1.55 billion on Nov 11, 2014. 

Meanwhile, Rozali said the delay had restrained Puncak Niaga and Syabas from undertaking projects for the benefit of consumers and the water industry, such as an upgrade of the water system by replacing pipes. - Bernama