Splash yet to agree on water deal, says Khalid

  • Nation
  • Monday, 15 Sep 2014

KLANG: While Puncak Niaga Sdn Bhd, Syarikat Bekalan Air Selangor (Syabas) and Konsortium Abbas Sdn Bhd (Abbas) accepted the offer for their equities and liabilities to be taken over, Syarikat Pengeluar Air Selangor Holdings Bhd (Splash) has yet to agree to the deal. 

Selangor Mentri Besar Tan Sri Khalid Ibrahim, however, said Splash's hesitance to accept the offer made by the state government was a non-issue, adding that the state, through Air Selangor Sdn Bhd, could still carry out its duties accordingly. 

In a press statement issued Monday, Khalid said the state had offered RM9.65bil to acquire the equities and liabilities of Puncak Niaga (RM2.47bil), Syabas (RM4.34bil), Splash (RM1.83bil) and Abbas (RM992.2mil). 

After a master agreement was signed between the state and Federal Government to allow Air Selangor, a subsidiary under Kumpulan Darul Ehsan Bhd (KDEB), to run the water industry in the state, Khalid said the deal was also for the state to pump RM14.9bil into the company for it to take over the four water concessionaires and operate smoothly. 

"In the agreement, it is also stated that the Federal Government will allocate RM2bil for Air Selangor for this same purpose," he said.  

Khalid said the transfer of these water companies' assets and liabilities that amounted to RM6.1bil to Perbadanan Aset Air Berhad (PAAB) would be done based on a 45-year lease. 

He added the National Water Services Commission (SPAN) would issue the facility and service licences to Air Selangor. For the Langat 2 water treatment plant, Khalid said the company would also handle the plant once it was completed. 

"The master agreement (on the water restructuring exercise between both governments) will be revealed soon in accordance with the Freedom of Information enactment. 

"With this takeover, which will be handled by Air Selangor only, there will not be any multiple profit-making situation while this also avoids water tariff to hike up by 82% which was suppose to have happened between 2009 and 2015," he said. 

Khalid added that any increase in water tariff in future would be made based on a reasonable rate, which will be monitored by SPAN. 

He pointed out that the increase in tariff could only be made if the state agreed to it.   

On efforts to cultivate raw supply via the Hybrid Off-River Augmentation System 600 and 3000, Khalid said they would be continued. 

The master agreement was signed by Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah on behalf of the Federal Government, State Secretary Datuk Mohammed Khusrin Munawi, on behalf of the Selangor government, while PAAB was represented by chief executive officer (CEO) Datuk Ahmad Faizal Abdul Rahman and Air Selangor Sdn Bhd by its CEO Suhaimi Kamaral­zaman. 

Energy, Green Technology and Water Minister Datuk Seri Dr Maxi­mus Ongkili and Khalid witnessed the signing on Friday.



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