KUALA LUMPUR, March 10 – The water industry restructuring in Selangor is stalled due to the state government’s refusal to resolve three of the eight conditions in the master agreement with the federal government, thus prolonging the water supply crisis in the state.
Energy, Green Technology and Water Minister, Datuk Seri Maximus Ongkili said the conditions included that for Pengurusan Air Selangor Sdn Bhd (Air Selangor) to finalise its list of assets to the enable the individual facility licence to be issued to Air Selangor under Act 655.
He said Air Selangor had also not resolved the transfer of assets ownership to Pengurusan Aset Air Berhad (PAAB) to enable PAAB provide an allocation of RM1.68 billion to assist Air Selangor to bear the cost of taking over the water concessionaires’ liabilities amounting to RM7.65 billion.
Ongkili was replying to a question from Azmin Ali (PKR-Gombak) in the Dewan Rakyat, Tuesday on the federal government’s commitment to implementing the Selangor Water Restructuring Master Agreement, which has been stalled. The minister said although the master agreement had been signed, it had not taken effect as there were conditions precedent (CPs) that had not been met. “Therefore, the statement by the Honourable Member from Gombak (Azmin), claiming that the federal government has reneged on the agreement was wrong and could confuse the public,” he said.