KINIBIZ Negotiations to consolidate the water assets in Selangor state are understood to have hit a snag, sources familiar with the sector told KiniBiz.

It is understood that if not resolved soon, this could result in the consolidation not being completed by year end, as targeted by Energy, Green Technology and Water Minister Maximus Ongkili.

It is understood that the bone of contention is with Puncak Niaga Holdings’ receivables which run into the billions.

Puncak’s executive chairperson and controlling shareholder Rozali Ismail could not be reached for comment.

To explain, Puncak has two concessions, one to treat water held under wholly-owned Puncak Niaga (M) Sdn Bhd (PNSB) and another to distribute treated water held by its 70 percent unit, Syarikat Bekalan Air Selangor Sdn Bhd (Syabas).

“The receivables are now an issue and have to be addressed... it’s not going on as smoothly as planned,” the source commented.

A check on Puncak’s notes which accompany its financial results indicates that its trade receivables amount to RM1.78 billion as at end June this year.

Go to KiniBiz for more.