SUPPLEMENTAL AGREEMENT FOR RESTRUCTURING AND CONSOLIDATION OF SELANGOR WATER SERVICES INDUSTRY

MEDIA STATEMENT

JULY 10, 2015

SUPPLEMENTAL AGREEMENT FOR RESTRUCTURING AND CONSOLIDATION OF SELANGOR WATER SERVICES INDUSTRY

PUTRAJAYA: The Supplemental Agreement for restructuring and consolidation of Selangor, Kuala Lumpur and Putrajaya water services industry was signed at the Deputy Prime Minister’s office today, 10 July 2015.

The signing of the Supplemental Agreement to the Master Agreement dated 12 September 2014 follows the conclusion of the State Government of Selangor negotiations with the Government of Malaysia.

Menteri Besar Mohamed Azmin Ali hailed the signing as a landmark event as the Agreement will have a major and direct socio-economic impact on the people of Selangor and Kuala Lumpur numbering almost 8 million.

He said that this was the culmination of the tireless efforts to return the rights to water supply to the people and the water supply services restructuring can now proceed as planned.

“This signing clearly shows that the State Government can work well with the Federal Government when both parties are prepared to set aside extraneous concerns for the common good and welfare of the people. The people’s interest must come first over everything else,” he added.

In particular, he commended Tan Sri Dato’ Muhyiddin Yassin – Deputy Prime Minister for showing leadership and conviction in ensuring that the water deal be resolved as soon as possible.

“I look forward to further and more productive engagement and collaboration between Shah Alam and Putra Jaya for the overall and long term good of the people,” he said.

The Menteri Besar thanked all the relevant parties for finally resolving the long drawn dispute that had arisen from the Master Agreement. He said that in spite of the various hiccups and protracted and tough negotiations, there was an underlying commitment to see the deal through.

He also applauded the spirit of co-operation and understanding of Datuk Seri Panglima Dr Maximus Ongkili – Minister of Energy, Green Technology and Water, Ministry of Finance and all relevant agencies in particular negotiators from the State.

“Despite the challenges and criticisms, all parties have demonstrated in the discussions and negotiations a serious commitment to work towards an amicable and sustainable resolution for the benefit of the rakyat,” he added.

“Once the take-over and consolidation of the private water concession companies under State-owned entity Air Selangor is completed, all efforts will be focused on further improving the water treatment and distribution systems as well the overall water supply services”, he added.

“The journey begins now to further improve the overall water services to reduce the Non-Revenue Water (NRW) and more critically to ensure sufficient water supply to consumers” he said.

The State Government via its wholly owned water company, Air Selangor, is implementing the restructuring and consolidation of the water services industry to ensure the provision of efficient, value for money and holistic water services from treatment to distribution of water supply to consumers.

The Federal Government and State Government together with Pengurusan Aset Air Berhad (PAAB) and Pengurusan Air Selangor Sdn Bhd (Air Selangor) had previously signed the Master Agreement as part of the efforts to restructure and consolidate the water supply services in Selangor and the Federal Territory of Kuala Lumpur and Putrajaya.

The water industry in Selangor will see the operations takeover and maintenance of water treatment facilities as well to increase the capacity of the facilities in using the latest technology.

Among other things, the Supplemental Agreement allows the water restructuring exercise to proceed without Selangor giving up its land whilst still complying with the requirements of the Water Services Industry Act, 2006. The Supplemental Agreement also extends the period for completing the Master Agreement by 60 days commencing from the date of the Supplemental Agreement.

In the interest of expediting the water restructuring exercise without further delay, the dispute on the ownership of the Sungai Semenyih and Bukit Nanas Water Treatment Plants will now be addressed separately between the Federal and State Government. The State has agreed to provide alternative water assets to PAAB in consideration for up to RM2 billion in funds to finance Air Selangor’s acquisition of the private water concession companies in Selangor.

The extension of the completion date of the Master Agreement will also facilitate the completion of the Sales and Purchase Agreement signed between Air Selangor and Puncak Niaga Holdings Berhad for the purchase the latter’s equity stakes in Syarikat Bekalan Air Selangor (SYABAS) and Puncak Niaga Sdn Bhd.

ISSUED BY

THE OFFICE OF THE MENTERI BESAR OF SELANGOR

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