KPS/JAKS/KHSB/Puncak Niaga ... May 09

Officials from the Selangor and Federal governments will meet to thrash out details and work towards completing the water restructuring in the state by end-June 2009.

Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui is not opposed to the idea of a re-valuation of the water assets owned by the state and the four water concessionaries.

Under the nationwide restructuring of the water sector in peninsular Malaysia and Labuan, the Minister of Finance Inc-owned PAAB will buy over all water assets in the state. Thus far, PAAB has signed agreements for the takeover of water assets in Malacca, Negri Sembilan and Johor.

The restructuring of water assets in Selangor led by the state government was supposed to have been completed in March 2009 but hit a snag when the four concessionaries did not agree to an offer of RM5.7bil made by the state in February 2009.

Subsequently, PAAB was roped in to begin negotiations with the concessionaries.
The setting up of a joint task force and the meeting between Khalid and Chin give renewed hope to the restructuring as Selangor has the most fragmented water industry with the most number of players.

The four concessionaries are Syarikat Bekalan Air Selangor (Syabas), Puncak Niaga (M) Sdn Bhd, Syarikat Pengeluar Air Selangor Sdn Bhd (Splash) and Konsortium ABBAS Sdn Bhd.

Valuation of water assets was the biggest issue for the concessionaries in not accepting the offer made by the state. The negotiations would look at the whole package, the assets and other costs.

There was a lot of wastage and all parties involved should look into bringing the percentage to a more acceptable level of 25% from the current 37% nationwide.

Related:
Puncak Niaga/KPS ... Mar 09
KPS/Puncak Niaga/JAKS ... Nov 2008
JAKS....Dated May 2008.
Puncak Niaga/KPS ... Mar 09