Ministry refutes Selangor MB's claims on Langat 2 handover

PUTRAJAYA: The Energy, Green Technology and Water (KeTTHA) ministry has denied allegations by Selangor Mentri Besar Datuk Seri Mohamed Azmin Ali during the state assembly sittings that the federal government has refused to handover the Langat 2 water treatment plant (LRAL2) to state-owned Pengurusan Air Selangor Sdn Bhd (Air Selangor).
In a statement issued today, the ministry clarified that the Cabinet in its decision on Feb 28 made it clear Pengurusan Aset Air Berhad (PAAB) will make a partial delivery of LRAL2 to Air Selangor only after the state government concludes its water supply restructuring scheme in the state.
"The federal government sees the restructuring of water supply as the best way to enable PAAB to develop water assets to address the issue of low treated water margins in Selangor which is between 0% and 3%.
"On the other hand, it is also fair for PAAB, as the owner of LRAL2, to collect its RM3.7 billion in investment for the construction of the plant through a lease rental to be borne by Air Selangor," it said.
The ministry also reminded the Selangor government to be committed in repaying PAAB loans amounting to RM1.6 billion for the acquisition of Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Puncak Niaga Sdn Bhd and Konsortium ABASS Sdn Bhd as well as RM6 billion for Selangor Water Bond.
"The Selangor government needs to act quickly to finalise the restructuring of water supply so that its people can enjoy clean water supply totaling 565 million litres daily (MLD) which will be supplied via LRAL2, which will also increase the water reserve margin in the state."
In the meantime, the ministry added that Selangor's water supply can be managed more efficiently by the National Water Services Commission (SPAN) which will enable Air Selangor, as a Service Licence holder, to focus on operational efficiencies, financial and service quality improvements to its consumers.