RM14 billion of state assets for Air Selangor

PETALING JAYA: The Selangor state government will inject RM14.92 billion worth of state assets into Air Selangor Sdn Bhd, a new state entity that will manage the water industry after the restructuring exercise is completed.
Mentri Besar Tan Sri Abdul Khalid Ibrahim said in a statement today that another RM2 billion in federal funds will be prepared to help facilitate the takeover of the state's four water concessionaires – Syarikat Bekalan Air Selangor (Syabas), Puncak Niaga Sdn Bhd, Syarikat Pengeluaran Air Sungai Selangor (SPLASH), and Konsortium Abass Sdn Bhd.
So far, all but SPLASH have accepted the state government's offer to acquire all equities and liabilities from the concessionaires at RM9.65 billion.
Khalid said the offer has been consistent since it was first offered in 2012 and the three concessionaires that have agreed to the terms will be receiving RM7.81 billion for their equities and liabilities.
"The issue of taking over SPLASH will be solved separately and it will not affect efforts to take over Selangor's water industry through Air Selangor," he said in a statement.
Khalid added that the Langat II water treatment plant will be leased to Air Selangor upon completion and the facility will be managed by the company.
He said the full terms of the agreement will be made public under Selangor's Freedom of Information Enactment (FOI), with the federal government's cooperation.
Meanwhile, Bukit Gasing assemblyman R Rajiv said the major concerns in the agreement are water tariff increase and whether it will be a complete takeover of the state's water industry.
"SPLASH controls the Sungai Selangor dam and the Sungai Selangor Plant (SSP) 1 and SSP3 water treatment plants, and from media reports it seems that SPLASH is excluded from the agreement.
"The Sungai Selangor dam supplies about 60% of raw water in Selangor and SPLASH also controls two of the three water treatment plants, with the SSP2 under Puncak Niaga," Rajiv told reporters at the state assembly's annex building today.
Selangor's water restructuring agreement was signed between the state and federal governments last Friday amid much contention from Pakatan Rakyat lawmakers who claimed that Khalid, the outgoing mentri besar, is in a caretaker position and is in no position to sign an agreement of such importance.