The federal and Selangor governments have signed a Memorandum of
Understanding (MoU) on the restructuring of the state's water supply
industry which has dragged on for five years.
The federal government was represented by Energy, Green Technology and
Water Minister Datuk Seri Dr Maximus Ongkili while the state government
by Menteri Besar Tan Sri Abdul Khalid Ibrahim at the signing ceremony
held at the Perdana Putra Complex here Wednesday.
The ceremony was witnessed by Prime Minister Datuk Seri Najib Tun
Razak, Deputy Prime Minister Tan Sri Muhyiddin Yassin and the Chief
Secretary to the Government Tan Sri Dr Ali Hamsa.
Under the MoU, the state government will issue a development order for
the construction of the Langat 2 Water Treatment Plant (Langat 2) and
its distribution system (LRAL2) (Package 2A) effective today and ensure
that all approvals and authorisations relating to the LRAL2 project
approved within 30 days.
In addition, the federal government is ready to inject additional funds
to enable the state government to take over water concession companies
and manage water supply in the state through a state-owned company.
The restructuring exercise is essential in ensuring sustainable and
efficient water supply services in Selangor, Kuala Lumpur and Putrajaya.
The MoU also allows the state government to bid on the state's water
concession companies, namely Puncak Niaga Sdn Bhd (PNSB), Syarikat
Bekalan Air Selangor Sdn Bhd (Syabas), Syarikat Pengeluar Air Selangor
Sdn Bhd (Splash), and Konsortium ABASS Sdn Bhd (ABBAS).
It also spells out that the federal government becomes a facilitator
for the state government in implementing the restructuring exercise
through the Water Services Industry Act 2006 (WSIA) and other applicable
laws.
Speaking at a news conference later, Ongkili said the federal
government agreed to set up a committee made up state government
representatives for the implementation of the LRAL2 project.
"The federal and Selangor governments hope water concessionaires in the
state will give full cooperation to ensure the success of the
restructuring of the water supply services industry for the well-being
of the people of Selangor, Kuala Lumpur and Putrajaya," he said.
Ongkili said the MoU was not prompted by current water crisis in Selangor but rather in the interest of the people.
"Even though Selangor is not under Barisan Nasional, the people's
interest comes first... we have worked hard for more than seven months
to reach a consensus," he said.
Describing the signing of the MoU as timely, Khalid said: "We have
agreed to implement the restructuring of the water industry which we
considered timely in light of the current situation to ensure that water
consumers in Selangor, Kuala Lumpur and Putrajaya enjoy the best
service," he said.
Negotiations on the restructuring exercise started in 2008 with no end
in sight to the detriment of the state's water supply services industry
and new development projects due to worries over water shortage.
The quagmire has stalled the LRAL2 project, an important component in
resolving impending water woes in Selangor, Selangor, Kuala Lumpur and
Putrajaya.
-- BERNAMA
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