The Selangor state government said it would consider buying over water concessioners Puncak Niaga Sdn Bhd and Syarikat Bekalan Air Selangor (Syabas) amicably, on condition that the overall cost of the move does not exceed its initial offer of RM9.65 billion.

“This is important because any increase in the takeover cost will have a negative impact on the water tariff and ultimately burden the people, especially the five million water consumers in Selangor, Kuala Lumpur and Putrajaya,” said Menteri Besar Abdul Khalid Ibrahim yesterday.

The state had previously offered RM9.65 billion to take over its four water concessionaires, but only the state-owned Konsortium Abass Sdn Bhd accepted the offer by the time the March 10 deadline lapsed.

The federal government has since invoked Section 114 of the Water Services Industry Act (WSIA), which allows a forced takeover.

                    

However, Khalid said the two companies have appealed to the Ministry of Energy, Green Technology and Water against that  action.

The menteri besar had previously said that the Selangor’s water industry is due to get about RM2 billion less than the initial RM9.65 billion offer in event of a forced takeover, since only their water assets would be taken over, not other things such as equities and liabilities.

Khalid also stressed that despite the appeal being still under consideration, it would continue to work with the Ministry of Energy, Green Technology and Water to take over the state’s water industry under Section 114 of the WSIA.