You’re Holding Up Water Asset Transfer, Ministry Tells Selangor

(MMO) – Putrajaya cannot yield the Langat 2 water treatment plant (LRAL2) to Pengurusan Air Selangor (Air Selangor) until the state’s water restructuring is complete, said the Energy, Green Technology and Water Ministry (KeTTHA).

Rejecting Selangor Mentri Besar Datuk Seri Azmin Ali’s claim that the takeover was being delayed, the ministry said the delivery of the plant was contingent on the finalisation of the long-drawn restructuring process.

“It was decided by the Cabinet the partial handover of the LRAL2 by Pengurusan Aset Air Bhd (PAAB) to Air Selangor would be done once the state government completes their water restructuring scheme.

“The federal government views the restructuring of the water supply as the best option to allow PAAB to develop water-related assets and to handle the issue of low levels of treated-water reserve margins in the state, which currently lies at zero to three per cent,” it said in a statement.

The ministry said PAAB was entitled to fair compensation for the construction of the facility, when justifying the RM3.7 billion in lease payments from Air Selangor.

“The Selangor government must also commit to paying back PAAB’s loan of RM1.6 billion for the takeover of Syarikat Bekalan Air Selangor Sdn Bhd, Puncak Niaga Sdn Bhd, and Konsortium ABASS Sdn Bhd, including the RM6billion Selangor Water Bond,” the ministry added.

It then urged Selangor to expedite completing its restructuring of the state’s water assets to avoid further supply disruptions.

The ministry also said the management of water supply in Selangor could be improved if it were to be managed by the National Water Services Commission (SPAN).

“This would allow Air Selangor, as operational licence holders, to focus its attention and resources on increasing the efficiency of their operations, financial stability, and improving the quality of service offered to users.”