Water, Land and Natural Resources Minister Dr Xavier Jayakumar has denied a media report that the federal government has agreed to fork out up to RM1.9 billion to finance the takeover of private water supply concessionaire Syarikat Pengeluar Air Selangor Holdings Bhd (Splash) with the Selangor government.

Singapore's The Straits Times reported today that the joint-funding deal was struck last week and could see the federal government fork out close to the sum, while the state government would give less than half of that.

However, Xavier told reporters that he had only stated that the transfer would only be completed by Aug 10, but did not specify any amount to be paid.

"I did not mention any amount or any quantum, because the quantum is completely a case of willing seller, willing buyer. So it is between (state-owned) Air Selangor and Splash.

"When they are comfortable with what they have (agreed on), they will come to us (federal government) and then we will facilitate the transfer," Xavier told reporters this morning.

The Selangor government has been in talks to take over Splash, a 40 percent subsidiary of Gamuda Bhd, as part of its water restructuring exercise but this has yet to materialise.

Questioned again on the quantum for the joint funding, the minister stated that negotiations between the concerned parties were ongoing.

He said: "Negotiations are ongoing because I have given them a deadline and I like them to keep to the deadline. By Aug 10, I hope we will be able to at least get it (the transfer) done."

In this morning's report, an "official source" told The Straits Times that in the deal struck between the two governments, both run by Pakatan Harapan, the federal government is set to pay RM1.9 billion for Splash.

"This, out of a total consideration of RM2.5 billion to RM 2.7 billion, (while) Selangor will pay Splash between RM600 million and RM800 million," the report states.

The source also stated that discussions are ongoing over how the assets are allocated between the two governments.

The source said: "The minister agreed to take things step by step after working out the financials."

The move, it said, could see an end to an almost decade-long spate of water supply disruptions in the state.

Ministry mulling stacked development

Earlier, Xavier spoke at the National Land Day celebrations of the Department of Land and Mines, where he announced that the ministry was considering adopting the “spatium” concept of land ownership.

“This concept will allow stacked development on top of existing buildings and separate ownership titles for land lots aboveground and underground.

“This will hopefully solve the high demand for land,” Xavier said.

Pressed on whether the government would ensure sufficient infrastructure to support such developments, he said approval for such projects would take into account suitability and need.

“We will look at the plot ratio and the availability as far as (building) density is concerned.

“(To see) whether in that area, we can allow or not allow (the spatium concept),” Xavier said, adding that the ministry had yet to finalise a mechanism for this.

Also in the works are plans for electronic land title plans and a process to ease the ending and renewing of strata schemes.

Xavier said his ministry is also reviewing the present Quit Rent rates, as required by law once every 10 years.