Water tariffs to go up after acquisition of concessionaires

Selangor MB says there will definitely be an increase in water tariffs because the acquisition aims to ensure quality and effective water supply services in Selangor

(Bernama) – Menteri Besar Mohamed Azmin Ali said the Selangor government would raise the water tariffs after the acquisition of four water concessionaires in the state.

“There will definitely be an increase in water tariffs because the acquisition aims to ensure quality and effective water supply services in Selangor.

“However, we assure that the increase will not burden the people,” he said in reply to a supplementary question from Mat Nadzari Ahmad Dahlan (BN-Batang Kali) on the increase of water tariffs, at the state assembly sitting, here, today.

Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH) is in acquisition talks while three others, Syarikat Bekalan Air Selangor (Syabas), Konsortium ABBAS Sdn Bhd (ABBAS) and Puncak Niaga Holding Berhad (PNHB) have completed theirs.

Azmin said the Selangor government had offered RM250 million to acquire SPLASH but the water concessionaire rejected the amount.

“The Selangor government will ensure that the acquisition talks with SPLASH will end in September 2016 as scheduled.

“We have also appointed an independent valuer to give fair value for the acquisition of the concessionaire,” he added.

The cost of acquiring the three other concessionaires amounted to RM1.68 billion, of which PNHB received RM1.07 billion, Syabas received RM0.52 billion and ABBAS, RM0.09 billion.