Puncak Niaga ready to rumble, says Rozali

SHAH ALAM: Puncak Niaga Holdings Bhd (PNHB) is prepared for a "messy" end to the Selangor water deal, its head honcho Tan Sri Rozali Ismail told reporters after its AGM yesterday, expressing frustration at the countless delays in sealing the RM1.55 billion Selangor water deal.
He explained that PNHB rescinding on the agreement could lead to the government invoking clauses under the Water Services Industry Act that allow it to implement the Langat 2 treatment plant under emergency conditions. PNHB would still be operating the water assets, but it would be under management and not through the current concession agreement.
"If they (the federal and state governments) cannot resolve it, we (PNHB) extending it also cannot resolve the issue. Might as well go the messy way, mess up everything and settle it in court. The court will give directions and everybody follows it."
"Nobody wants to put the interest of the public first. If they want to have big head (conceited) it will be difficult. It will be messy. That's the only way, if everyone wants to have their own way and won't settle," Rozali said.
PNHB's subsidiary Puncak Niaga (M) Sdn Bhd operates, manages and maintains 29 water treatment plants with a combined capacity of 1.96 billion litres a year. Its other subsidiary to be disposed off, Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), is responsible for the distribution of water supply to over 7.5 million people.
In a recent statement, Rozali said its board will not entertain anymore extensions to the agreement signed with Pengurusan Air Selangor Sdn Bhd in November 2014 and proceed with its suspended legal suits against the state government after Ramadan.
According to PNHB's 2014 annual report there are at least five pending suits against the state government with regard to its concession agreements.
Rozali, who owns a 40.25% stake in PNHB, has become its greatest advocate after being against the restructuring exercise initially, taking out ads in local newspapers in an effort to nudge the federal and state governments toward an agreement.
He said it was to ensure that the people do not suffer from further water shortage issues.
He explained that an earlier proposal to up the offer price for its water assets was also ditched after taking into consideration the impact of such a move to water tariffs and consumers.
"We thought of increasing the price, because my shareholders and my board said the delays have caused us lost of opportunities, business ... but on second thought, if we increase the price there are also implications to the consumer ... so in the interest of the consumer we don't want to ... and the board made a decision not to increase the price," he explained.
Despite the numerous failed attempts for the two parties to reach an agreement, the Selangor water deal may not have such a 'messy' end.
Rozali said he had been given an assurance by both governments, that an end is in sight.
"They are telling us that they are almost there; 99% issues settled. Hopefully they will resolve the one percent issue, because we need the decision, the takeover, to happen immediately. We need people to come and make decisions and implement projects," he said, adding that it may even happen within one to two weeks.
PNHB's own expansion/diversification plans have been in limbo for the last five months due to delays in signing the water asset disposal agreement.