SHAH ALAM, 21 FEB: The four concession companies managing the water industry in Selangor, Kuala Lumpur and Putrajaya can bring the RM9.65 billion offer to an Arbitration Committee if they are not satisfied with the amount.
However, the State Government has reiterated that the offer is the best because it gives a 12 percent return annually on the equity to shareholders of these companies.
Chief Minister Tan Sri Abdul Khalid Ibrahim said that the offer would allow them to restructure the water industry to be more efficient.
“The is the best offer by the people of Selangor because the people of Selangor do not want to pay more than the stated amount to the concessionaires.
“If they are not satisfied, we can have an open order for arbitration,” he said in a press conference at the State Secretariat Building (SUK) today.
Yesterday, the State Government announced the RM9.65 billion offer to all four of the concessionaires to takeover their operations.
The four companies are; the Selangor Water Supply Company (Syabas), Puncaak Niaga San Bhd, Konsortium Abbas Sdn Bhd (Abbas) and Syarikat Pengeluar Air Selangor Holding (Splash).
The offer provides greater returns compared to the current yield of only 6 percent per annum.
If this offer is accepted, the State Government will manage the entire treated water supply system which all this while have been facing problems of high rates of water losses, supply disruptions and unreasonable increases in price.
In the meantime, Abdul Khalid also stressed that the offer has already been submitted to all four of the companies to be considered.
In the case of Syabas, the offer will be presented to the equity holders of Syabas which is Puncak Niaga Holdings Berhad.
“Syabas certainly are not the ones receiving the offer, instead, it is the shareholders of Syabas who are receiving it. We want to takeover the equity, this means that Syabas employees have nothing to do with this matter. We are giving it to the shareholders,” he added.