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PETALING JAYA: After more than two decades managing Malaysia’s sewerage systems, Indah Water Konsortium (IWK) will continue to do so until 2034.
The government awarded a concession agreement to IWK in 1994 after a sewerage services law was passed in Parliament the year before.
Under the agreement, IWK was given the responsibility to take over, manage and maintain the public sewerage system until March 31, 2022.
“The government has now agreed to extend the agreement through a supplemental agreement. This means IWK is allowed to manage our sewerage services until 2034,” environment and water minister Tuan Ibrahim Tuan Man said at an online press conference today.
He said the extension was made following a Cabinet decision in October last year, taking into consideration IWK’s “stellar performance”.
Under the new agreement, IWK will have the opportunity to explore non-tariff business activities, he said.
Tuan Ibrahim also said sewerage charges should be increased as they had not been reviewed since 1994.
“This is the challenge faced by IWK. They need the financial capacity to maintain their ageing assets while upgrading the system and bringing in new equipment,” he said. - FMT
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