After years of delay, the Selangor state government had finally agreed to allow the Langat 2 water treatment plant to be constructed.
The project was scheduled for construction in 2010 but was delayed because of the Selangor government's refusal to issue a development order.
On Wednesday, the Federal government and the Selangor state had signed a memorandum of understanding (MoU), allowing the state government to take over the equity of four concession companies.
Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili represented the Federal government while Menteri Besar Tan Sri Abdul Khalid Ibrahim represented the state government at the signing ceremony held at the Perdana Putra Complex.
The ceremony was witnessed by Prime Minister Datuk Seri Najib Tun Razak, Deputy Prime Minister Tan Sri Muhyiddin Yassin and the Chief Secretary to the Government Tan Sri Dr Ali Hamsa.
Once completed, Langat 2 would treat 1.89 billion litres of raw water to cater for the water demands in Selangor, Kuala Lumpur and Putrajaya until 2025.
Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim said the takeover is expected to be completed within three months.
He said the four companies will be placed under a water consortium company, under the Kumpulan Darul Ehsan Berhad (KDEB), a state wholly-owned company.
The four companies are Puncak Niaga Sdn Bhd, Syarikat Bekalan Air Selangor Sdn Bhd (SYABAS), Syarikat Pengeluar Air Selangor Sdn Bhd (SPLASH) dan Konsortium ABBAS Sdn Bhd (ABBAS).
In a press statement, Abdul Khalid said the takeover will involve equity, responsibility and retention of non-management staffs.
“KDEB will pay RM9.65 billion to the shareholders of the four companies while the Federal government will inject RM2 billion into the deal to help the state government in the takeover process,” he said in the statement.
In return, he said, the state government will issue a development order to build the Langat 2 water treatment plant and distribution system (LRAL2).
He said while waiting for the Langat 2 plant to be ready, the Selangor state government, to ensure clean water supply, will carry out mitigation programme worth RM900 million which has been allocated by the Federal government.
He said the state will also begin the Hybrid Off River Augmentation System at Sungai Selangor and reduce the percentage of non-renewable water from the current 33 per cent within six months.
“The MoU is right on time when the people are struggling with water crisis and this proved that the water industry need to be restructured for better services and lower tariff,” he said.
Meanwhile, in a joint statement with Abdul Khalid, Ongkili said the state government must approve the construction of the plant within 30 days of sigining the MoU.
He said the Federal government had also agreed to set up a committee which the state government will also be part of, to ensure smooth implementation of the LRAL2 project.
Astro Awani
Wed Feb 26 2014
'No one will win a trade war,' China says after Trump tariff threat
Donald Trump says he would impose the tariffs until China stops the flow of illegal drugs, particularly fentanyl, into the United States.
What has caused Pakistan's deadly clashes between police and supporters of Imran Khan?
Topping the demands of Khan's Pakistan Tehreek-e-Insaf (PTI) party is the release of all its leaders, including Khan, who has been jailed on a series of corruption charges since August 2023.
One woman or girl killed every 10 minutes by intimate partner or family member - UN
The report highlights that "60 per cent of all female homicides" are committed by "people closely related to them".
Sweden urges Chinese ship to return for undersea cable investigation
Two subsea cables, one linking Finland and Germany and the other connecting Sweden to Lithuania, were damaged in less than 24 hours.
[COLUMNIST] Building more highways won’t solve traffic congestion - reducing demand will
It is clear that adding more lanes and highways doesn't work, because we are still attempting the same approach to solve the issue.
Hyundai to invest RM2.16 bil in Malaysia through strategic partnership with INOKOM
This investment includes efforts to upgrade INOKOM's existing assembly capacity to meet Hyundai's automotive needs.
‘C4Cinta’ sets record as highest-grossing Malaysian Tamil film
'C4Cinta', directed by young filmmaker Karthik Shamalan, has set a new benchmark in Malaysian Tamil cinema.
Man charged with mother's murder, storing body in freezer
The court denied bail and scheduled case mention on Feb 7 for the submission of forensic, autopsy, and chemist reports.
Abolition of examination in schools to reduce pressure on pupils - Fadhlina
The classroom assessment approach offers a much more interesting learning ecosystem, says Fadhlina Sidek.
Google, Meta urge Australia to delay bill on social media ban for children
Google and Meta says the government should wait for the results of an age-verification trial before going ahead.
Judge tosses Trump 2020 election case after prosecutors' request
It represents a big legal victory for Donald Trump, who won the Nov. 5 US election and is set to return to office on Jan. 20.
DHL plane crash in Lithuania leaves authorities searching for answers
Rescue services said the plane hit the ground, split into pieces and slid over 100 metres (110 yards).
National squad to hold friendly matches for 2025 Indoor Hockey World Cup
The warm-up matches will involve matches against better ranked teams in the world, namely Austria (first) and Belgium (third).
G7 seeks unity on ICC arrest warrant for Netanyahu
The United States, part of the G7, has rejected the ICC decision, with President Joe Biden describing it as outrageous.
Francissca Peter remembers Tan Sri Ahmad Nawab: A tribute to a musical legend
A legend who has influenced our music for decades, was one of the highlights of my career, says Francissca Peter.
TikTok decision coming soon as Jan. 19 divestment deadline looms
Judges are reviewing TikTok's challenge to a law requiring ByteDance to sell its US assets by Jan. 19 or face a ban.
Lebanese sources: Biden, Macron set to announce Israel-Hezbollah truce
In Washington, White House national security spokesperson John Kirby said, "We're close" but "nothing is done until everything is done".
PM meets chaebol tycoon to attract more FDI to Malaysia
Chaebols are prominent figures from South Korea's family-owned conglomerates.
Govt won't allow non-citizen vehicles to enjoy RON95 subsidy - Economy Ministry
The implementation of the RON95 subsidy in 2025 is expected to provide savings of RM3.6 billion to government expenditure.
Ringgit opens lower as greenback gains ground
Dr Mohd Afzanizam says the market responded positively to news of hedge fund manager Scott Bessent heading the US Treasury Department.