Selangor water assets worth RM12b, says MB

Tan Sri Khalid reveals Selangor’s water assets is valued at RM12 billion in a ceramah last night. — Picture by Jack Ooi

KUALA LUMPUR, June 11 — Selangor mentri besar Tan Sri Khalid Ibrahim has revealed that the state’s water assets is valued at RM12 billion, 12 times more than an evaluation provided by the federal governmentrecently.

Khalid, who had initially valued the assets at over RM10 billion, had appointed independent auditors to publish a full report of all water assets in the state to ensure that Selangor’s takeover of the state water industry from four water concessionaires is done in a “fair manner.”

“Last night, I was told after spending RM760, 000 to review all of the water assets belonging to the state government, I would like to announce that the state’s water assets is valued at RM12 billion.

“That is the problem with Umno, they don’t know how to count,” he said during a ceramah here last night.

Selangor’s water assets were valued at only RM1 billion by the federal government’s wholly-owned Water Asset Management Company (PAAB).

Both state and federal governments have been locked in a struggle over water assets in Selangor since Pakatan Rakyat (PR) took control of the state in 2008, with neither side wanting to give the other control over the critical industry.

The state government had made an offer of RM9 billion for the assets of the concessionaires but the group had rejected it, calling the offer “ambiguous.”

The national water industry restructuring scheme has been delayed by a dispute over the price of the privatised assets in Selangor, which also provides water to the federal territories of Kuala Lumpur and Putrajaya.

Selangor made the RM9 billion combined offer to the four water concessionaires in Selangor — Puncak Niaga (M) Sdn Bhd (PNSB), Bekalan Air Selangor Sdn Bhd (Syabas), Konsortium Abass Sdn Bhd (ABASS) and Syarikat Pengeluar Air Selangor Sdn Bhd (SPLASH).

Selangor, which already owns 80 per cent of the state’s water supply assets, is preparing to take over the remaining assets after Putrajaya said it did not object to direct negotiations between the state government and concessionaires.

Selangor intends to retain management of the water assets, which also cover the federal territories of Kuala Lumpur and Putrajaya. A project to get water from Pahang has also been delayed because of the issue.

The state government has made two previous offers for the water assets. The first offer, RM5.7 billion for assets and equity, was turned down by all four players, while the second RM9.4 billion offer — this time including liabilities — was rejected by Syabas and sister company PNSB.

Control of Selangor’s water assets is important to PR so it can set tariffs and fulfil its campaign promise of free water for all residents in the state.

“If I use only RM1 billion from the RM12 billion of our water assets and sold it, we can give the people of Selangor free water for more 8 years,” he added.