The government is obliged to furnish the full details of the privatisation of water services, a project that has been in the pipeline for years and costs an estimated RM10 billion.

DAP national vice-chairperson and Kepong MP Dr Tan Seng Giaw said the people have the right to know how the privatisation of water services is going to affect them.

He said the full disclosure should include the appointment of concessionaires such as Selangor government's investment arm Kumpulan Darul Ehsan Berhad (KDEB) and water company Puncak Niaga Holdings Bhd (PNHB).

"Why are there only two consortia?" he asked, referring to the July 7 signing of RM2.5 billion worth of projects between KDEB and the state to build water facilities.

He said over the years, the state has spent billions on water facilities such as the Semenyih and Sungai Selangor dams.

"The public are unhappy that the privatisation comes after public funds have been allocated for dams and other facilities. They are afraid of 'piratisation'," Tan said in a statement.

Criteria questioned

Tan quoted KDEB president Zabir Bajuri as saying after the signing ceremony that the water project included the construction of a treatment system, pipelines and ancillary services.

"Our track record and experience in water business and the government's confidence in KDEB have landed us the deal," Zabir was quoted as saying.

However, there are concerns over the contingency capabilities of existing water treatment plants and the on-going upgrades.

Tan said: "We hope he is right and that water services in Selangor and Kuala Lumpur will reach international standards in all aspects.

"On the other hand, are there no other companies which have the capability of handling these services? What are the criteria?"

He said the privatisation projects for water services in the state are estimated to be worth around RM10 billion, with 60 percent believed to go to PNHB and 40 percent to KEDB.

Gov't bailouts

Tan cited the example where a huge chunk of infrastructure contracts to rebuild Iraq worth billions of dollars were given to friends of US President George W Bush after he invaded Iraq two months ago.

He said when the billion-ringgit North-South Highway project was awarded to United Engineers Malaysia (UEM), it was met with objections and court action, and eventually the concessionaire was bailed out by the government.

"The same applies to Indah Water Konsortium (IWK), another major project costing billions. We protested, insisting that the manner with which it was implemented was against the interest of the people."

This concessionaire also got into difficulty and was bailed out by the government.

"Now, the quality of water causes concern. Its colour and sedimentation are worrying residents. The government is fumbling. The old asbestos pipes have yet to be replaced.

Tan was doubtful as to whether privatisation will improve water services in the state.

Such concerns arise in light of rapidly rising costs for basic utilities such as water and electricity supply, sewage treatment and garbage collection services.