Selangor Menteri Besar optimistic in settling discussion over water

The Selangor Menteri Besar is optimistic that negotiations on the restructuring of water supply services in the state will be solved by month-end.

"We are discussing the issues raised by Puncak Niaga which owns equity in Syabas (Syarikat Bekalan Air Selangor Sdn Bhd).

"We are optimistic of finding a solution," Tan Sri Abdul Khalid Ibrahim told a media conference after a gathering here Monday.

He was asked to comment on a statement by Puncak Niaga Holdings Bhd (PNHB), the majority shareholder in two water consessionaires, Syabas and Puncak Niaga (M) Sdn Bhd (PNSB), on Dec 5, accepting in principle, the taking over of the two companies by Kumpulan Darul Ehsan Bhd, with several conditions.

PNHB, among others, wanted the equity contribution amount be paid to it, including a mixed returns of 15 per cent a year, as compensation to its holding companies for loss of future income, following the sale of water conesssion businesses to the state government before the expiry of their concessions.

"Syabas' unsettled debt to PNSB on the effective date in connection with the the supply and sale of water to Syabas must be paid to PNHB because service had been rendered," said PNHB.

On the offer by Gamuda Bhd to take over four water concessionaires in Selangor for RM10.7 billion as compared to RM9.65 billion by the state government, Abdul Khalid said he would act based on feedback from the energy, green technology and water ministry on the offer.

The four companies are PNSB, Syabas, Konsortium Abbas Sdn Bhd and Syarikat Pengeluar Air Sungai Selangor Sdn Bhd.