SELANGOR WILL NOT CEDE LAND UNDER WATER DEAL

Selangor Sultan, in an unprecedented departure, tells Menteri Besar Azmin Ali to find a solution to water woes.

SHAH ALAM: Selangor Menteri Besar Azmin Ali has reiterated that his administration is committed to restructuring the water services industry in the state based on the Master Agreement with the Federal Government.

“The Federal Government must not shift from the letter and spirit of the Master Agreement,” said Azmin at the lobby of the Selangor Assembly. “It’s a matter of principle.”

He was implying that the Selangor Government would not budge from its stand that it will not cede even an inch of the state’s land through which 26,000 km of pipes belonging to state water concessionaires are laid and run.

Earlier, Sultan of Selangor Sultan Sharafuddin Idris Shah told the state government in an unprecedented departure to find a swift solution to the state’s water industry restructuring plans.

Under the Master Agreement, Selangor’s new special purpose vehicle — Pengurusan Air Selangor Sdn Bhd — has RM14.92 billion in assets to manage the water-restructuring exercise with Putrajaya. Both the Selangor and Federal Governments listed the assets as consisting of pipes, water treatment plants, reservoirs and pump stations valued at RM14.9 billion in the agreement, but not land.

The Federal Government agreed to provide RM2 billion to help offset Selangor’s cost of taking over the four concessionaires — Syarikat Bekalan Air Selangor Sdn Bhd, Puncak Niaga Sdn Bhd, Konsortium Abbas Sdn Bhd and Syarikat Pengeluar Air Selangor Sdn Bhd.

Selangor, in return for the RM2 billion, would provide all necessary approvals for the dormant Langat 2 water treatment plant.