Syarikat Pengeluar Air Selangor Holdings Bhd (Splash), Puncak Niaga Sdn Bhd and Syarikat Bekalan Air Selangor (SYABAS) – there are the three water concessionaires that forced Putrajaya and Selangor state government to opt for the option of invoking Section 114 of the Water Services Industry Act (WSIA) 2006 after they rejected the state government’s offer of RM9.65 billion to takeover their companies including state-owned Konsortium Abbas Sdn Bhd (ABBAS).
Putrajaya had agreed to invoke WSIA 2006 early this week.
Following Putrajaya’s decision, SYABAS and PNSB had made an appeal to Energy, Green Technology and Water Minister Maximus Ongkili last Monday asking for a review of the terms of the water restructuring deal.
On April 8, Maximus had written to Selangor state government asking it to consider the appeal of both companies.
Selangor Menteri Besar Khalid Ibrahim had agreed to the request, but insisted that the takeover offer must not exceed the initial offered price of RM9.65 billion.
“Any increase in the takeover cost will negatively impact the state’s water tariff and eventually burden consumers in Selangor, Kuala Lumpur and Putrajaya,” Khalid stressed, adding that the state government would work with Energy, Green Technology and Water ministry to continue the water restructuring exercise.
Putrajaya and Selangor had entered a memorandum of understanding on February 26, which among others stated that the former would help to facilitate the restructuring of the state’s water industry.
In return, Selangor would grant all necessary approvals for the commencement of multi-billion ringgit Langat 2 water treatment plant.
On ABBAS had accepted Selangor state government’s takeover offer on March 10, the deadline as stipulated in the MoU.
Khalid had once said if Section 114 was invoked, the state government would save RM2 billion from the takeover exercise, bringing the total down to RM7.65 billion.