Selangor to reconsider appeals from PNSB and SYABAS

The Selangor government is prepared to reconsider the appeals made by Puncak Niaga Sdn Bhd (PNSB) and Syarikat Bekalan Air Selangor (SYABAS) to participate in the restructuring of the state's water service industry before Section 114 of the Water Service Industry Act 2006 is enforced by the federal government.

Menteri Besar Tan Sri Abdul Khalid Ibrahim, however, said that the takeover cost proposed by the two companies should not exceed the original offer of RM9.65 billion.

"This is important because an increase in the takeover cost will give negative impacts to the water tariff and will eventually burden the people, especially over five million water consumers in Selangor, Kuala Lumpur and Putrajaya," he said in a statement here on Thursday.

He said Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili in a letter dated April 8, had requested the state government to consider the appeals made by the two companies in their letters dated April 7.

"The state government would like to thank the ministry for its cooperation in solving the takeover issues...and we will continue discussing the suitable modus operandi for the takeover according to Section 114 of the WSIA," he said.

On Feb 26 last year, the federal and state governments signed a memorandum of understanding (MoU) on the agreement to restructure the state's water industry.

The MoU provides for the Selangor government to approve the construction of the Langat 2 Water Treatment Plan and the federal government's willingness to invoke Section 114 of the WSIA, which will enable the state to pay only RM7.65 billion compared to the initial offer of RM9.65 billion to purchase the equity of the four the water concessionaires in the state.

The companies are PNSB, Syabas, Konsortium Abass Sdn Bhd agreed (ABASS) and Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH).