The Selangor government only needed to grant access to the 26,000km of pipes for the federal government's water assets management company to lease back to the state's special purpose vehicle that will manage the water industry, minister Datuk Seri Maximus Ongkili said today.
"The question of the land covering 26,000km of pipes was never a central issue to the implementation of the master agreement.
"The statement by the Selangor mentri besar that the state’s sovereignty is jeopardised because the federal government insists it wants land covering 26,000km of pipe area in Selangor is confusing and worries the rakyat of Selangor," he said.
Ongkili said the ministry is still committed in ensuring the success of the master agreement signed between four parties on the restructuring of the state water supply industry.
The master agreement was signed between the federal government, Selangor government, Pengurusan Aset Air Berhad (PAAB) and Pengurusan Air Selangor Sdn Bhd (Air Selangor) on September 12, last year.
He said the ministry will continue to engage with the state government to resume talks and extend the cut-off date by writing a letter to Azmin asking him to rethink the decision on Thursday.
"The letter also requested for a meeting at the officers' level, as well as between the minister and menteri besar, as soon as possible.”
On the land ownership issue, he said the assets will be leased out to the water services operator (Air Selangor) for 45 years, and once the tenure is completed, the assets and related land will be returned to the state.
He said that although the master agreement has defined water assets to include land, the issue of Selangor having to surrender land covering 26,000km of pipes was never a central issue.
On whether the federal government would invoke Section 114 of the Water Services Industry Act 2006 to resolve the impasse, Ongkili said it is an option but only as a last resort when negotiations fail and national interests are jeopardised.
A legal recourse, he added is also an option as the heads of agreement earlier signed between the parties concerned on August 1, 2014 is irrevocable.
"However, the ministry is confident the federal government and Selangor government can sit down and iron out all disputes towards realising the master agreement." he said.
- TMI
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