Six states have successfully restructured their water services industry, which is a win-win situation for them and the federal government, without neglecting the needs of the people, Deputy Energy, Green Technology and Water Minister Mahdzir Khalid said.

The states are Penang, Perak, Malacca, Negri Sembilan and Johor, while Perlis has settled the issue and is in the process of corporatising its water services industry.

"We are going state by state. As for Kelantan, the draft agreement is with the Attorney-General's Chambers for final evaluation," Mahdzir told reporters after attending a briefing on restructuring the industry in Kedah in Alor State yesterday.

He said that he would also be meeting Kedah Menteri Besar Mukhriz Mahathir on the matter.

Under the restructuring process, the government through Pengurusan Aset Air Bhd (PAAB) will swap states' debts to the federal government in return for their water assets like dams, water treatment plants and mains.

    

The assets will then be leased back to the states at a rate to be determined for a specific consession period, like up to 40 years.

Mahdzir said for Kedah, oustanding debts from 1990 stood at RM1.9 billion.

- Bernama