No higher water costs for users, declares MB
Selangor Menteri Besar Abdul Khalid Ibrahim has dismissed PKR director of strategy Rafizi Ramli’s warning that the state’s water industry restructuring deal would lead to higher costs for consumers.
Selangor Menteri Besar Abdul Khalid Ibrahim has dismissed PKR director of strategy Rafizi Ramli’s warning that the state’s water industry restructuring deal would lead to higher costs for consumers.
“No,” he curtly replied when asked about Rafizi’s claim at a press conference today after chairing a state exco meeting.
As part of the deal struck between the Selangor government and the federal government, Selangor is supposed to provide the necessary approvals to build the Langat 2 water treatment plant while the federal government gives Selangor the go-ahead to takeover its water industry.
Rafizi had
warned
that the cost Langat 2’s construction and the cost of repaying bonds issued to finance the acquisition of the water concessionaires will be passed on to the consumer in the form of higher tariffs.
When asked whether he would be able to ensure that the Water Asset Management Company (PAAB) won’t raise prices after the water assets are returned to the state government, Khalid said PAAB is amongst the parties involved in the memorandum of understanding (MOU).
“In this new MOU, PAAB is amongst the parties involved. It has already been agreed in the MOU. This not only involves Selangor, but Johor and Malacca, too.
“The way they do it, they do it at cost. The price offered by PAAB is the same as those offered to other states including Penang,” he said of the federal agency.
Meanwhile, Khalid refused to comment when asked about the authenticity of a purported copy of the MOU posted on Rafizi’s blog, saying that he is not interested.
“I don’t want to comment if there is no proof. We have certain rules in the Official Secrets Act. I am not interested in talking about that document.
“I am only interested in the MOU that will be released,” he said, while promising that in will be done in a week.
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