SHAH ALAM, 21 Mar: The acquisition of the four water utility firms in Selangor by Putrajaya in the next two weeks is in line with Section 114 of the Water Services Industry Act (WSIA) 2006, said the Chief Minister, Tan Sri Abdul Khalid Ibrahim.

He said that move would enable the restructuring of the water in the state to be accelerated with the Federal Government taking over the water assets and handing over the management power and operations to the Selangor Government.

He said that the people should not worry because Selangor’s interests are still being preserved when the water operations are left entirely to the State Government.

“Although the Federal Government said three years (acquisition), but they can hand it to the State Government to handle it.

“Under Section 114, the power to take over is in the hands of the Federal Government, but after acquiring it, they can give the power to the State Government to manage it,” he said in a press conference after inaugurating the ninth Selangor Matta Fair at the Shah Alam Convention Centre today.

The Minister of Energy, Green Technology and Water, Datuk Seri Dr Maximus Ongkili, in a statement to The Star, said that Putrajaya will take over the operations of four water firms in Selangor in the next two weeks.

He said that the three-year acquisition is temporary until the Langat 2 Water Treatment Plant is operational.

The Federal Government now has the power to use Section 114 of the WSIA which allows Putrajaya to intervene and take over the operation of water assets because no settlement has been reached between the concessionaires and the State Government.

Water concessionaires in Selangor are Puncak Niaga Holdings Bhd, Syarikat Bekalan Air Selangor Sdn Bhd (SYABAS), Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH) and Konsortium ABASS Sdn Bhd.

Putrajaya and the Selangor Government signed a Memorandum of Understanding (MoU) to resolve the water issue in the state in February.