The Selangor government has decided not to use the Water Services Industry Act (WSIA) after two water concessionaires, Puncak Niaga Sdn Bhd (Puncak Niaga) and Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), accepted the state's takeover terms.
Selangor Menteri Besar Abdul Khalid Ibrahim, in a joint statement today with Energy, Green Technology and Water Minister Maximus Ongkili, said they made the joint decision after receiving the confirmation from Puncak Niaga and Syabas.
"Puncak Niaga and Syabas have agreed to the takeover by the Selangor government, pending approval from their shareholders at their respective extraordinary general meetings (EGM)," the statement said.
According to the agreement, Puncak Niaga Holdings Bhd (PNHB) accepted the Selangor government offer for the takeover of the equity, liability and assets of Puncak Niaga and Syabas at a value of RM2.47 billion and RM3.11 billion each, the statement from the Menteri Besar's Office said.
With this, three out of four water concessionaire in the state have accepted the Selangor state government's offer after Konsortium Abass Sdn Bhd (Abass) shareholders earlier agreed to the takeover worth RM990 million.
Only Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) is yet to agree to the Selangor government's offer.
The Selangor government emphasised that the takeover over of the equities, assets and liabilities of Puncak Niaga, Syabas and Abass, costing RM6.57 billion, was in line with the amount agreed to in the Memorandum of Understanding signed between the state and federal governments on Feb 26, 2014.
State-owned Kumpulan Darul Ehsan Bhd made a total offer of RM9.65 billion to takeover the four concessionaires.
Selangor willing to takeover Splash
As Splash is yet to agree with the Selangor government's offer, the statement said, an agreement has been reached between the federal and the state for the payment of raw water from that water concessionaire to be reviewed to get a proper price.
“The Selangor government is prepared to takeover the Splash equity, assets and liabiliies if Splash shareholders agree to the price offered by the state on Feb 26,” the statement said.
With the takeover of the three water concessionaires, Puncak Niaga, Syabas and Abass, the Selangor government will continue with its water restructuring exercise by holding discussions on signing an agreement for the purchase and selling of KDEB shares, with the shareholders of the three companies.
The Selangor government will continue to hold discussions with the federal government and Pengurusan Aset Air Bhd (PAAB), with the view of signing an agreement to sell and lease water assets.
The sale of water assets by the state to PAAB will total RM2 billion and this will help the state government pay a portion of the total RM9.65 billion for the takeover of the four companies.
Following this, the federal and state governments have also agreed to hasten the formation of a committee to supervise the construction of the Langat 2 water treatment plant.
The two governments believe the agreement on the water restructuring exercise achieved today is the first step towards increasing the water service industry in Selangor, Putrajaya and Kuala Lumpur.
Selangor Menteri Besar Abdul Khalid Ibrahim, in a joint statement today with Energy, Green Technology and Water Minister Maximus Ongkili, said they made the joint decision after receiving the confirmation from Puncak Niaga and Syabas."Puncak Niaga and Syabas have agreed to the takeover by the Selangor government, pending approval from their shareholders at their respective extraordinary general meetings (EGM)," the statement said.
According to the agreement, Puncak Niaga Holdings Bhd (PNHB) accepted the Selangor government offer for the takeover of the equity, liability and assets of Puncak Niaga and Syabas at a value of RM2.47 billion and RM3.11 billion each, the statement from the Menteri Besar's Office said.
With this, three out of four water concessionaire in the state have accepted the Selangor state government's offer after Konsortium Abass Sdn Bhd (Abass) shareholders earlier agreed to the takeover worth RM990 million.Only Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) is yet to agree to the Selangor government's offer.
The Selangor government emphasised that the takeover over of the equities, assets and liabilities of Puncak Niaga, Syabas and Abass, costing RM6.57 billion, was in line with the amount agreed to in the Memorandum of Understanding signed between the state and federal governments on Feb 26, 2014.
State-owned Kumpulan Darul Ehsan Bhd made a total offer of RM9.65 billion to takeover the four concessionaires.
Selangor willing to takeover Splash
As Splash is yet to agree with the Selangor government's offer, the statement said, an agreement has been reached between the federal and the state for the payment of raw water from that water concessionaire to be reviewed to get a proper price.
“The Selangor government is prepared to takeover the Splash equity, assets and liabiliies if Splash shareholders agree to the price offered by the state on Feb 26,” the statement said.
With the takeover of the three water concessionaires, Puncak Niaga, Syabas and Abass, the Selangor government will continue with its water restructuring exercise by holding discussions on signing an agreement for the purchase and selling of KDEB shares, with the shareholders of the three companies.
The Selangor government will continue to hold discussions with the federal government and Pengurusan Aset Air Bhd (PAAB), with the view of signing an agreement to sell and lease water assets.
The sale of water assets by the state to PAAB will total RM2 billion and this will help the state government pay a portion of the total RM9.65 billion for the takeover of the four companies.
Following this, the federal and state governments have also agreed to hasten the formation of a committee to supervise the construction of the Langat 2 water treatment plant.
The two governments believe the agreement on the water restructuring exercise achieved today is the first step towards increasing the water service industry in Selangor, Putrajaya and Kuala Lumpur.
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