Selangor Menteri Besar Abdul Khalid Ibrahim today finalised the state's water restructuring deal with Putrajaya, staving off attempts to abort the plan by any incoming Pakatan Rakyat leader who will be succeeding him.
 
The deal has proven controversial as Khalid has been accused of keeping Pakatan in the dark during the negotiations, as is with many other policy matters.
 
Khalid, who has since been expelled from PKR and has also lost majority support in the state assembly, is temporarily occupying the menteri besar seat pending a replacement from Pakatan.
 
He inked the master agreement of the water restructuring deal with Energy, Green Technology and Water Minister Maximus Johnity Ongkili in Putrajaya this morning.
 
Khalid in a statement today, lauded the deal, saying that the Selangor government's intention to control the state's water infrastructure has finally become a reality.
 
He also praised various state and federal agencies which have been involved in making the deal possible.
 
"The agreement opens a new chapter for the water services industry in Selangor, Kuala Lumpur and Putrajaya where Air Selangor Sdn Bhd, fully owned by the rakyat of Selangor, will bring more professional and efficient water services," he said.
 
Air Selangor to take over water firms
 
The agreement will see the creation of Air Selangor Sdn Bhd, which will take over the water assets in the state from the concessionaires.
 
The deal will see the takeover of Puncak Niaga Sdn Bhd, Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) and Konsortium Abbass Sdn Bhd, all of which have agreed to a total price tag of RM7.45 billion, by the state government.
 
The fourth water concessionaire, Syarikat Pengeluar Air Selangor Sdn Bhd (Splash), will be taken over by the state under the Water Services Industry Act 2006.
 
Khalid said another signing of agreement between Air Selangor Sdn Bhd and Puncah Niaga Sdn Bhd will take place at a later date.
 
The takeover, facilitated by the federal government, is a quid pro quo deal for Putrajaya's bid to push for the RM3.6 billion Langat 2 water treatment plant, for which state approval is required.
 
Khalid said the Langat 2 water treatment plant will also come under Syarikat Air Selangor when it is completed.
 
He stressed that despite criticism of the deal, it was in the best interests of the rakyat.

‘Water services to improve’

 
He added that under the new management of the state government, the water infrastructure will be managed by a team with the right expertise and experience.
 
"Air Selangor Sdn Bhd will give attention to upgrading pipes in order o reduce non-revenue water (NRW) that is presently at a high level, at 34 percent, and also to improve the capacity of existing water plants with the latest technology," he said.

He was also reported by Bernama as saying that there will be no staff retrenchment following the takeovers.

 
The old water concessionaires have been blamed for the water woes in the state for supposedly failing their contract obligation to reduce NRW.
 
NRW is treated water which fails to reach consumers as it is wasted in the forms of leaks such as burst pipes.
 
In a separate joint statement by Khalid and Ongkili, the duo outlined the key areas of the deal as follows:

  • Konsortium Air Selangor Sdn Bhd will be the licence holder for water services in Selangor
  • The Water Asset Management Company (PAAB) will make available RM1.68 million in funds to facilitate the takeover; in exchange PAAB will hold the state’s water asset for 45 years.
  • PAAB will assume the liabilities of the concessionaires and state government which is estimated at RM7.45 billion in the water deal.
  • PAAB will lease the water assets to Air Selangor Sdn Bhd for payment at a rate to be negotiated by both sides in the Facility Agreement and Lease Agreement.

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