The takeover of four water concession companies by Selangor government cannot fully solve the water woes in the Klang Valley in the immediate future, said Energy, Green Technology and Water Minister Peter Chin Fah Kui.
He said this was because the takeover process would likely take a long time as there must be some willing sellers and buyers.
"The takeover of the four companies is not a very wise stand as only the construction of the Langat 2 Water Treatment Plant Langat 2 can solve all the water woes in Selangor, Kuala Lumpur and Putrajaya," he told a press conference after attending the ministry's Hari Raya Open House at the Malaysian Agro Exposition Park in Serdang yesterday.
The state government had wanted to take over the four concession companies, namely Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Puncak Niaga Sdn Bhd (PNSB), Syarikat Pengeluaran Air Sungai Selangor Sdn Bhd(Splash) and ABASS Consortium, to implement the water industry restructuring plan.
Yesterday, Selangor Menteri Besar Abdul Khalid Ibrahim said the state government would announce its latest offer to buy all four water concession companies in another two weeks.
Chin (right) said the federal government was more than willing to help the Selangor government to take over the four companies.
He said a letter had also been sent to Khalid, stressing that the federal government would not stop the state government's efforts to restructure the state's water industry in a holistic manner.
"If Selangor government is able to take over, we have no objection to that. We can go along with it but the restructuring efforts should adhere to the laws," he said.
Chin also called on the Selangor government to emulate Melaka, Johor and Penang in taking over water concession companies through Pengurusan Aset Air Berhad.
"The restructuring of water industry in those states was implemented in accordance to the Water Services Industry Act 2006. This is what we want to implement in Selangor," he added.
‘Tariffs may not go up’
Chin also said water tariffs cannot be raised arbitrarily but will be negotiated between the concessionaire, the Selangor government and federal government.
He said the Selangor government’s claim that water tariffs would rise dramatically with completion of Langat 2 Water Treatment Plant was untrue.
"The completion of Langat 2 project will not necessarily cause the water tariffs to rise."
Selangor Exco member Xavier Jayakumar had warned the people will have to pay higher water tariffs when Langat 2 project worth RM3,744 billion is implemented.
Jayakumar said Syabas as the only concessionaire in Selangor, Kuala Lumpur and Putrajaya will have to raise water tariffs.
Chin said the federal government wanted Langat 2 project to be implemented this year for completion by 2015 to supply 1.130 million litres of water daily to eight million users by 2025.
"Langat 2 project will take three to three and a half years to complete. If it can't be completed by 2015, the Klang Valley population will face severe water problem as mitigation projects to increase water in Selangor is inadequate.
"We may have to get water supply from Pahang to meet the growing need and demand for water," he added.
- Bernama
He said this was because the takeover process would likely take a long time as there must be some willing sellers and buyers. "The takeover of the four companies is not a very wise stand as only the construction of the Langat 2 Water Treatment Plant Langat 2 can solve all the water woes in Selangor, Kuala Lumpur and Putrajaya," he told a press conference after attending the ministry's Hari Raya Open House at the Malaysian Agro Exposition Park in Serdang yesterday.
The state government had wanted to take over the four concession companies, namely Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Puncak Niaga Sdn Bhd (PNSB), Syarikat Pengeluaran Air Sungai Selangor Sdn Bhd(Splash) and ABASS Consortium, to implement the water industry restructuring plan.
Yesterday, Selangor Menteri Besar Abdul Khalid Ibrahim said the state government would announce its latest offer to buy all four water concession companies in another two weeks.
Chin (right) said the federal government was more than willing to help the Selangor government to take over the four companies. He said a letter had also been sent to Khalid, stressing that the federal government would not stop the state government's efforts to restructure the state's water industry in a holistic manner.
"If Selangor government is able to take over, we have no objection to that. We can go along with it but the restructuring efforts should adhere to the laws," he said.
Chin also called on the Selangor government to emulate Melaka, Johor and Penang in taking over water concession companies through Pengurusan Aset Air Berhad.
"The restructuring of water industry in those states was implemented in accordance to the Water Services Industry Act 2006. This is what we want to implement in Selangor," he added.
‘Tariffs may not go up’
Chin also said water tariffs cannot be raised arbitrarily but will be negotiated between the concessionaire, the Selangor government and federal government.
He said the Selangor government’s claim that water tariffs would rise dramatically with completion of Langat 2 Water Treatment Plant was untrue.
"The completion of Langat 2 project will not necessarily cause the water tariffs to rise."Selangor Exco member Xavier Jayakumar had warned the people will have to pay higher water tariffs when Langat 2 project worth RM3,744 billion is implemented.
Jayakumar said Syabas as the only concessionaire in Selangor, Kuala Lumpur and Putrajaya will have to raise water tariffs.
Chin said the federal government wanted Langat 2 project to be implemented this year for completion by 2015 to supply 1.130 million litres of water daily to eight million users by 2025.
"Langat 2 project will take three to three and a half years to complete. If it can't be completed by 2015, the Klang Valley population will face severe water problem as mitigation projects to increase water in Selangor is inadequate.
"We may have to get water supply from Pahang to meet the growing need and demand for water," he added.
- Bernama
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