Azmin: Full takeover of Selangor water concessionaires by September 2015

(Malay Mail Online) – Selangor expects to complete its takeover of the state’s water concessionaires along with their assets and liabilities by September next year, Mentri Besar Azmin Ali said today.

Speaking in the state assembly this morning, Azmin explained that two out of four state water concessionaires — Konsortium Abbas Sdn Bhd and Syarikat Pengeluar Air Selangor Sdn Bhd (Splash) — have yet to be acquired by his administration.

“The water industry will be in full control (of the Selangor government) after the takeover of Abass and Splash in line with the interests of the people.

“It is expected to be completed in the third quarter of 2015, seeing as the main agreement between Air Selangor (Sdn Bhd) and Splash is for a year starting from September 12, 2014,” Azmin said in response to a query raised by Sri Andalas assemblyman Dr Xavier Jeyakumar during question and answer time.

Azmin also said that Putrajaya has yet to respond to Selangor’s request to declassify the contents of the water restructuring agreement.

Last month, Energy, Green Technology and Water minister Datuk Seri Dr Maximus Ongkili reportedly said that his ministry would not disclose the contents of the deal, saying that this was decided based on legal advice from the Attorney-General’s Chambers (AGC).

Ongkili added that full disclosure would require the agreement of all stakeholders including state water concessionaires.

Azmin is demanding that the federal government publicly disclose the contents of the water restructuring agreement signed by his predecessor and rival, Tan Sri Khalid Ibrahim.

He had said that such a move was necessary as a first step in reviewing the controversial water deal.

Under the agreement that also paved way for the Langat 2 water treatment plant, Selangor will infuse a new special purpose vehicle with RM14.92 billion in assets to manage the water restructuring exercise now finalised with Putrajaya.

Khalid’s administration had initially made a combined offer of RM9.651 billion to take over assets and liabilities of the four concessionaires.

Splash rejected the offer outright, however, which pushed Selangor to threaten to enforce Section 114 of the Water Services Industry Act 2006. The law provision allows Putrajaya to forcibly acquire a concessionaire.

The water restructuring plan and the Langat 2 project were among several reasons given by PKR in deciding to remove Khalid from office.