Puncak Niaga Holdings Bhd today agreed with Pengurusan Air Selangor Sdn Bhd to a second extension to March 9 of the ‘stop date’ for the handover of the former’s water concession business as well as Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) to the Selangor government.

Puncak Niaga said there were still pending issues related to the transfer between the Selangor and federal governments as well as the consent from Unit Kerjasama Awam Swasta of the Prime Minister’s Department on the sale of Syabas.

In a statement yesterday, Puncak Niaga chief operating officer Syed Danial Syed Ariffin urged both parties to resolve the matter immediately, saying it affects the level of services and management of the water supply system.

“Many major decisions on capital expenditure and operating expenditure also cannot be implemented as these had been put on hold by the government,” he said.

Puncak Niaga Holdings and Pengurusan Air Selangor sealed a conditional sale and purchase agreement (SPA) on Nov 11, 2014 whereby they agreed on each other’s proposed disposal for RM1.55 billion.

The SPA was signed to enable the water industry in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya to be consolidated, for the Selangor water industry to be managed by Selangor, and for the federal government to expedite the construction of the Langat 2 water treatment plant and the distribution system.

Under the terms and conditions of the SPA, all conditions precedent were  supposed to be fulfilled on Jan 12 this year, but on Jan 14 the ‘stop date’ was extended to Feb 9, 2015.

- Bernama