I’m ready to hold talks, says Khalid

  • Nation
  • Wednesday, 21 Aug 2013

SHAH ALAM: Selangor Mentri Besar Tan Sri Khalid Ibrahim said he is ready to hold talks with the Federal Government on the water services industry restructuring exercise and the development of Langat 2 treatment plant.

“We are looking forward to the discussions. I have prepared drafts of the arrangement on how it (the restructuring) should be done,” he told reporters at the PKNS Hari Raya open house here.

Khalid said that Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor told him at a meeting yesterday that discussions on water concession in the state must be speeded up.

“It has to be a holistic one (solution), and the restructuring done via an SPV (special purpose vehicle) of the state,” Khalid said in response to a statement from Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili that the Federal Government had set a target of three months to reach a resolution with the Selangor Govern­ment on the Langat 2 project.

The RM3bil Langat 2 water treatment plant is a federal project, but the development needs to be approved by the state government under the Land Code.

The plant will receive raw water from Pahang via an underground tunnel, which is almost complete, and can process 1,130 million litres per day.

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 Holdings Bhd.

The state government in 2009 made a bid of RM5.7bil but it was rejected by all the players. A subsequent offer of RM9.2bil was made in 2011 but it was rejected by Puncak Niaga and Syabas.

The Federal Government holds one golden share in Syabas through Minister of Finance Inc.

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