Takeover to be completed in three months

26 Feb 2014 / 23:32 H.

PUTRAJAYA: The five-year battle between the federal and Selangor governments over water woes is on the road to resolution, with the signing of a memorandum of understanding (MoU) on the matter today in Putrajaya.
With this, Kuala Lumpur and Putrajaya will also see an end to water problems that have plagued relations between Selangor and the federal government since 2008 when Pakatan Rakyat took control of the state.
Water and Green Technology Minister Datuk Seri Dr Maximus Ongkili, who represented the federal government, said the federal government is ready to allocate RM2 billion to help Selangor take over four water concessionaires.
This will allow the state government to manage water services via Kumpulan Darul Ehsan Berhad (KDEB).
The state government will now make a final offer of RM9.65 billion to buy Syarikat Bekalan Air Selangor Bhd (Syabas), Puncak Niaga Sdn Bhd (PNSB), Konsortium Abbas Sdn Bhd and Syarikat Pengeluar Air Selangor Holdings Bhd (Splash).
Ongkili said the two parties had agreed to the completion of the Langat 2 water treatment plant and its distribution system.
He said Selangor in return will issue a Development Order for the construction of the Langat 2 water treatment plant and its distribution system and ensure all approvals and authorisation for the project is approved within 30 days from the signing of the MoU.
"This will help solve water problems that have been plaguing the state. Construction projects that have been be put off due to the lack of water, can start now," he said.
Selangor mentri besar Tan Sri Abdul Khalid Ibrahim represented the state government. Witnessing the ceremony were Prime Minister Datuk Seri Najib Razak and his deputy Tan Sri Muhyiddin Yassin.
Khalid later said the MoU is timely as the water industry in Selangor needs restructuring.
"The takeover is expected to be completed in three months and all four companies will be placed under Kumpulan Darul Ehsan Berhad (KDEB) which is owned by the Selangor government. The takeover will not cause non-management staff to lose jobs," he said in a statement.
The end of the water saga occurs against a backdrop of one of the biggest water crises Selangor has ever faced with 60,000 households ' water supplies being rationed from today.
Meanwhile, Syabas announced that the state government is reducing raw water supply by 200MLD to treatment plants with the plants directed to reduce water production.
The concessionaire said a scheduled water distribution plan for phase 2 of rationing is being formulated, and if approved by the National Water Services Commission (Span), will be announced on Feb 28.
Phase two of rationing is expected to start on March 2 and will see about 3 million consumers facing disruption or low water pressure.


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