Restructuring on | Selangor Times
Issue 118


Restructuring on
Writer: Brenda Ch'ng
Published: Fri, 10 Aug 2012

SHAH ALAM: Selangor will move ahead to restructure the state’s fragmented water services industry following the Federal government’s “approval” on Wednesday.  

“Selangor welcomes Putrajaya’s decision which agrees with the state to restructure the water services industry in accordance with the Water Services Industry Act 2006,” said Menteri Besar Tan Sri Khalid Ibrahim in a statement issued to the press yesterday.

The Cabinet committee on water said Selangor could take over from concessionaires based on a “willing buyer and willing seller” concept and added that they did not wish to intervene in the matter.

Khalid said the state will call on all four water concessionaires to complete the takeover and consolidation based on reasonable market price.

Three companies - Puncak Niaga Sdn Bhd (PNSB), Syarikat Pengeluar Air Selangor Sdn Bhd (Splash) and Konsortium Abass Sdn Bhd (Abass) - treat raw water from the dams while Syarikat Bekalan Air Selangor (Syabas) distributes the treated water to consumers.

Khalid pointed out that Selangor had established a special committee headed by the state secretary to finalise the takeover by September.

If the concessionaires cannot accept the price being offered (for the assets), they can refer the matter for independent arbitration.  “Selangor will adhere to whatever decision is made by the independent arbitrating body,” said Khalid.

The state’s new proposal will also be sent to the National Water Services Commission (SPAN), Pengurusan Asset Air Berhad (PAAB) and the Energy, Green Technology and Water Ministry to ensure that restructuring and the acquisition of liabilities of the water services industry can be resolved at the same time.

Khalid reiterated that the state was committed to restructuring the water services industry to improve efficiency at reasonable rates for consumers.

Selangor had previously twice offered to take over the four debt-ridden water concessionaires.

Their first offer of RM5.7 billion in January 2009 was rejected by all four companies. 

Selangor then revised its offer to RM9.3billlion, which was accepted by Splash and Abass but rejected by Syabas and PNSB.

Syabas and PNSB are owned by Puncak Niaga Holdings Bhd.

Meanwhile, the Coalition Against Water Privatisation yesterday pointed out that the statement issued by the cabinet special committee will not help to solve the four-year impasse between the four companies and Selangor.

Its coordinator, Charles Santiago, said Selangor has already valued and offered RM9 billion to take over the four water concessionaires but the players wanted RM12 billion.

“What the Federal government should have said is that they’ll use the law, the Water Services Industry Act, to ensure that Selangor is given the opportunity to manage water, which includes nudging and pushing the water players to accept Selangor’s terms,” said  Santiago.

CAWP also announced yesterday that it will file a lawsuit next week to compel the water companies, Selangor and Putrajaya to disclose all information relevant to the purported water crisis in Selangor.

The coalition, which includes the Malaysian Trades’ Union Congress (MTUC), has asked for seven sets of information from Selangor’s sole water distributor Syabas but the company yesterday declined to provide them.

Santiago commented after the meeting with Syabas that it’s “unacceptable” for the company to hide behind the veil of  secrecy in a matter of public interest.

The coalition has asked for certified records of the amount of water entering and exiting the treatment plants, as well as the final amount of water distributed to consumers from Jan 1 to July 15.

“Once we’ve the numbers, we can see if they match and ascertain whether there is a water crisis in Selangor (as claimed by Syabas) or it’s being manufactured,” said Santiago, the member of Parliament for Klang.

Syabas had told CAWP it cannot furnish the requested records because it needed the federal and state governments’ permission to disclose such information under the concession agreement.

CAWP has also asked for the treatment plants’ electricity bills, chemical usage and the three water treatment companies’ invoices to Syabas.

But Syabas told the coalition it cannot furnish the documents as it would violate the confidentiality of the agreements it has with the three treatment companies.

Apart from Santiago, Senator Syed Shahir Syed Mohamud and MTUC vice-president Roszeli Majid also attended the meeting with Syabas.


 Selangor Times



Also in News:

Trade in old for new at Aino Living

BN resorting to dirty tactics

Over 100 banners bearing DAP and PAS logos and containing misleading messages around Selangor were taken down by Pakatan Rakyat leaders last weekend, and they are urging Barisan Nasional to stop these dirty campaign tactics.

Roof for sports facility

Youths living in Section 6 can now play basketball and volleyball in the public court come rain or shine after a roof is completed.

Worried residents want vacant plot fenced up

Broken house and car windows along Jalan Bukit Permai 2/4 caused by children playing football on a vacant piece of land there are making residents fear for their safety, and they want the place fenced up.

Hostel for landslide victims

Landslide-stricken Seri Beringin Apartment and Kampung Pasir residents were finally moved to Kompleks Rakan Muda hostel on Sunday, after being evacuated from their homes last Wednesday.











From Windows to a Mac: A guide




In for a sweet treat




A Majestic presence





Copyright © 2018 Selangor Times. All rights reserved. Designed By Senedi