Now, Selangor says no deal to allow Putrajaya access to land

Selangor Menteri Besar Mohamed Azmin Ali says no agreement has been reached to allow Putrajaya access to lands where the state’s water pipes are located. – The Malaysian Insider file pic, March 25, 2015.

Selangor today said there was no agreement yet to allow Putrajaya access to lands where its water pipes were located following the tanked water deal, despite a minister claiming otherwise hours earlier.

Selangor Menteri Besar Mohamed Azmin Ali said the discussions between both Selangor and officials from the Energy, Green Technology and Water Ministry had just commenced on Monday, and no decision had  been made on the matter.

"No agreement yet. We just started discussions yesterday" he told reporters outside the Parliament lobby today.

He said what was important was that the spirit and terms of the master agreement must be adhered to.

He added that the conditions did not state Selangor needed to surrender its lands where the 26,000km of pipes run through, to Putrajaya.

Azmin also gave his assurance that he was committed to resolving the issue.

Energy, Green Technology and Water Minister Datuk Seri Maximus Ongkili said earlier this morning that Selangor had allowed the federal government access to the disputed lands.

"There is no revision and we have to stick to the agreement (master water agreement). I also understand that they (Selangor) will give us access to the land," said Ongkili, expressing confidence that a new document with minor adjustments would be signed soon between the federal government and Selangor on the water restructuring agreement.

The master agreement was signed by Azmin's predecessor Tan Sri Abdul Khalid Ibrahim last year, aimed at taking over operations of the RM30 billion Selangor water industry from four private companies and returning it to public ownership.

The terms of the master agreement include state special-purpose vehicle Pengurusan Air Selangor Sdn Bhd (PASSB) acquiring Syarikat Bekalan Air Selangor Sdn Bhd, Puncak Niaga Sdn Bhd, Konsortium Abass Sdn Bhd and services licence-holder Konsortium Air Selangor Sdn Bhd.

Pengurusan Aset Air Bhd (PAAB) will pay RM1.68 billion to facilitate the concession acquisitions and in return, the Selangor government will turn over the water assets to PAAB for a period of 45 years.

PAAB will lease the water assets to PASSB, which will pay a leasing fee to PAAB, at a rate that will be determined between the two parties and set out in the facility and lease agreements.

Earlier this month, Azmin had announced that Selangor would not grant Putrajaya a third extension on the Selangor water restructuring deal, accusing the federal government of breaching the terms of the agreement.

He also said the deal tanked because Putrajaya wanted free land where the water pipes were located.

But, Ongkili said Putrajaya did not renege on the Selangor water deal by demanding free land as the provision was already inked in the master agreement.

- TMI