Syarikat Bekalan Air Selangor Sdn Bhd  (Syabas) has entered into two loan facility agreements and the ancillary agreements with the Finance Ministry for loans worth RM75 million and RM76 million each.

Syabas is a 70 percent-owned subsidiary of Puncak Niaga Holdings Bhd.

In a filing to Bursa Malaysia today, Puncak Niaga said the RM75 million loan would be used to finance works related to the water supply mitigation programme, involving old pipes and critical pipes replacement in Selangor, Kuala Lumpur and Putrajaya.

“The RM76 million loan will be used to finance the second phase of the programme which involves reducing non-revenue water loss as one of the projects to mitigate the water shortage in the same areas,” it said, adding that interest was at three percent per year while default interest was at five percent per annum.

The loan tenure will be for 20 years commencing from the first drawdown date while the grace period of the loan will be for a period of three years, which will also commence from the drawdown date.

- Bernama