Selangor govt makes offer to KL, Putrajaya

KUALA LUMPUR (Feb 18, 2014): The Selangor government intends to provide free water to the people of Kuala Lumpur and Putrajaya after its ongoing water restructuring exercise is completed.
Selangor Mentri Besar Tan Sri Abdul Khalid Ibrahim (pix) said he will first see what the consumers' response will be to the offer of free 20 cubic metres of water before proceeding with the move.
"It is just a suggestion from me for now. I will have to see whether the people of Kuala Lumpur, Putrajaya and Cyberjaya are happy with it. It is up to them," he told the press today after attending the "Malaysian Power & Water Summit 2014".
Khalid said it is only fair to extend the offer to Kuala Lumpur and Putrajaya as these areas received their water supply from the same source – Syarikat Bekalan Air Selangor (Syabas).
Pakatan Rakyat implemented the free water policy in June 2008 after wresting Selangor from the Barisan Nasional in the general election that year.
The state government is now subsidising 20 cubic metres of water for 5.2 million domestic consumers.
The free water policy for Selangor is funded by Kumpulan Darul Ehsan Bhd (KDEB) as part of the state's move to share its revenue with the people.
This policy, if implemented in Kuala Lumpur and Putrajaya, will benefit more people in the wake of the rising cost of living.
Khalid said Syabas, along with other concessionaires, will be absorbed into a subsidiary of KDEB in the restructuring, granting the state government control of water distribution to the 2.1 million consumers in the two cities.
He said discussions between the state and federal governments, and the concessionaires are in their final stages and will be wrapped up within two weeks.
Khalid said they are mainly finalising the paperwork and it is now up to the concessionaires to accept the state's offer of RM9.65 billion to take over water assets, failing which the restructuring will proceed regardless.