S'gor hails Putrajaya nod to water restructuring

Selangor will resume negotiations with the four water concessionaires in the state to kick off its water supply restructuring scheme.

The state government will form a special committee, headed by the state secretary, to finalise the takeover latest by September 2012, Menteri Besar Abdul Khalid Ibrahim said in a statement today.

The move comes with Putrajaya consenting to the restructuring of the assets of the concessionaires in line with the Water Services Industry Act 2006 (Wisa).

"Selangor welcomes the federal government decision in agreeing with the state government going ahead with the restructuring in accordance with Wisa.

"The state government has been willing to implement the restructuring for a long time. Therefore, the state will call the four concessionaires to resolve the takeover of their concessions at a reasonable market price," said Khalid.

If the concessionaires were not willing to take up the price offered by the state, they were welcome to refer this to an independent arbitration body to set the price.

"The state government will abide by the decision of the arbitrators.

"The state will also propose to Pengurusan Aset Air Bhd and the Energy, Green Technology and Water Ministry to ensure that the leasing of the water assets and assumption of water industry liabilities are simultaneously resolved," Khalid said.

However, the committee overseeing Syarikat Bekalan Selangor Air Sdn Bhd (Syabas) would continue with its task, he added.