Just give access to water pipes, ministry tells Azmin

Federal govt makes concession to end deadlock over water supply deal

PETALING JAYA: The federal government has made what appears to be a concession to the Selangor government to cut through their deadlocked deal over management of water supplies.

A statement by the energy and water ministry yesterday said that Selangor only had to provide access to, or rights over, the 26,000km-long network of water pipes to the new water management body Pengurusan Aset Air Bhd.

Selangor menteri besar Azmin Ali had complained recently of a loss of state sovereignty arising from federal insistence on taking over the land through which the pipes run.

However, the ministry said it was not an issue so long as the state granted access to the pipe network, even though the master agreement required the land to be transferred.

Other parts of the water system such as treatment plants, pumping stations and reservoirs were classified as landed assets and could be alienated by the state, the ministry said in a statement, reported by Star Online.

The ministry said the water management agreements with six other states called for the land to be leased to the water services operator for 45 years, after which the assets and the land would be returned to the state.

The landed assets in Selangor are valued at about RM7.6 billion.

In a related announcement, the two water supply companies currently involved in negotiations with Selangor, which wants to take over the concessions, said the state government had asked for a month-long extension for finalising the deal.

Puncak Niaga and Syarikat Bekalan Air Selangor said in a statement that the deadline had been extended twice after Selangor failed to fulfil certain terms of a conditional agreement signed in November.

The two companies said Selangor’s request would be discussed by company management before being placed before the board of directors.