SHAH ALAM: Selangor can look forward to some additional revenue as state-owned Pengurusan Air Selangor Sdn Bhd (Air Selangor) is now the sole water provider for Selangor, Kuala Lumpur and Putrajaya.
The deal will officially take off this Friday (Sept 13).
Mentri Besar Amirudin Shari said the water distribution business was lucrative and would bring in good returns.
"There is a need to make big investments as well but it will ensure returns," citing Air Perak as an example of a good profit making state-owned water concessionaire company.
Amirudin said Selangor was now finally able to chart the path of its water industry after years of negotiations with private companies that were formerly managing Selangor's water industry.
"For many years, we had given it to private players that I consider were not very good," he added.
Amirudin said this to reporters at the sidelines of a forum on the state's budget as well as a dialogue with the Hong Kong Chinese Importers and Exporters Association at a hotel here on Tuesday (Sept 10).
With the new turn of events, Amiruddin said Selangor now had a 30-year plan to strengthen its water industry.
"We are expecting to spend some RM1bil a year to replace pipes as well as upgrade our water treatment plants," he added.
According to Amirudin, Selangor will also be able to chart its developmental programmes as it now held the reins of the state's water industry.
"So, Selangor's water issues are now over and now we have to look at how to manage and ensure we have a good plan.
"We have 22,000km of pipelines but have managed to change only 438km only.
"And if we manage to change about 100km this year, we will have about 600km of new pipelines in place," said Amirudin.
He added that not all of the 22,000km of pipelines needed to be replaced as some stretches only needed to be reviewed.
He added the state has managed to reduce its non-revenue water (NRW) by some three to four percent.
(NRW includes water that is lost due to leaky underground pipes some of which cannot be located.)
Earlier at another event, Amirudin had announced that the state's water restructuring exercise had been completed with the takeover of water assets from concessionaire companies Puncak Niaga Sdn Bhd (PNSB Water), Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Konsortium ABASS Sdn Bhd (ABASS), and Syarikat Pengeluar Air Selangor Sdn Bhd (Splash).