Selangor will be handing over RM2 billion worth of state assets to Pengurusan Aset Air Bhd (PAAB) today, to secure funds to take over the state's water concessionaires.

Selangor Menteri Besar Azmin Ali told Malaysiakini this afternoon that this was part of the supplemental agreement for the state's water restructuring exercise, which he inked with Putrajaya today.

"Selangor's assets are valued at RM14.9 billion. We only require about RM2 billion to acquire those four companies.

"We will surrender our assets worth RM2 billion to PAAB and in return, we will get the money to acquire these companies, Azmin said.

The move will effectively give Selangor full control of the water concessionaire companies in the state.

The agreement was signed at 3pm, by Azmin ( photo ) for the state and Energy, Green Technology and Water Minister Maximus Ongkili for the federal government, at Deputy Prime Minister Muhyiddin Yassin's office.

This agreement, a supplemental agreement to Selangor's Master Agreement with Putrajaya, was supposed to have been finalised in February.

However, it has been delayed until now as a result of disputes over Selangor's assets.

Met after Friday prayers at the Putra Mosque, Azmin said the disputes have been resolved.

"I've been meeting with the minister (Ongkili), as well as with the prime minister and deputy prime minister, since last week.

"So, Alhamdulillah, I think both sides have done a remarkable job to ensure that this issue is settled amicably," he added.

Selangor need not give up its land

The supplemental agreement allows the water restructuring exercise to proceed without Selangor giving up its land.

It also extends the period for completing the Master Agreement by 60 days, starting from the date of the supplemental agreement.

Asked about the Langat 2 project, Azmin said Selangor would facilitate the project once the papers are submitted.

"Langat 2 is important to the consumers and to the state.

"I have given my commitment to the prime minister and deputy prime minister that the state will facilitate giving the approvals once we receive the applications from the developer," the menteri besar added.

Syabas has warned that without the Langat 2 water treatment plant, Selangor, Kuala Lumpur, and Putrajaya would face severe treated water shortage.

Once completed, the plant is expected to cope with the water demands in the Klang Valley until 2025.