Gamuda Bhd hopes the government will make a reasonable offer to sellers of water assets in Selangor, group managing director Lin Yun Ling said in Shah Alam today.

He said the new offer should not only take into account the discounted cashflow value but the RM1.5 billion invested by Gamuda and the income to be reaped over the remaining 20 years of the concession.

selangor mb khalid ibrahim free water pc 110608 01 Speaking after the company's annual general meeting, Lin said Gamuda was willing to discuss the matter further with the government.

"As one of the sellers, we are willing to compromise and be flexible when it comes to valuation, but it cannot be unreasonably priced," he added.

Pengurusan Aset Air Bhd, a federal government-run firm, is expected to announce the new offer next week after the Selangor government aborted its original plan to pay RM9.2 billion for the assets.

The plan was called off after Puncak Niaga Holdings Bhd, Gamuda and Kumpulan Perangsang Selangor Bhd could not reach an agreement on the price offered by the state government.

The Selangor government was locked in a tussle with the federal government over control of the state's water assets and managing companies which supplies water to Selangor, Kuala Lumpur and Putrajaya.

The federal government is adamant in nationalising all water assets and four concessionaires managing the state's water resources, but Selangor argued that this would prompt sharp hikes in water tariffs.

- Bernama