The Selangor State’s offers to the four water concession companies has been at RM9.65 billion since 2013.
From the RM 9.65 billion, the Federal Government is allocating RM2 billion to the Selangor State Government to take over the equity in the four water concession companies.
In return, the Selangor State Government will transfer RM2 billion in water assets to Pengurusan Aset Air Berhad (PAAB).
These assets will subsequently be leased back to Pengurusan Air Selangor Sdn Bhd (Air Selangor) at an agreed lease rate.
“The balance RM7.65 billion is actually all the outstanding water-related debts owed by Puncak Niaga Sdn Bhd (PNSB), Syarikat Bekalan Air Selangor Sdn. Bhd. (SYABAS), Syarikat Pengeluar Air Selangor (SPLASH) and Konsortium ABASS Sdn Bhd (ABASS), which will be assumed by the State through Air Selangor” said Suhaimi Kamaralzaman, Chief Executive Officer of Air Selangor.
The water related debts of the concession companies were mainly for construction, refurbishment and replacements of the water treatment plants and water supply systems, which will also be transferred to PAAB and subsequently leased back to Air Selangor at an agreed lease rate.
Free Water Programme Continues
“Domestic premises in Selangor will continue to enjoy the free water programme even after the on-going restructuring water industry exercise is completed, as mentioned by the Selangor Menteri Besar. There is no plan to discontinue the programme” said Suhaimi.
“Nevertheless, an in-depth study will be conducted and findings presented to the State and stakeholders.
The study will primarily analyse the water usage and identify recipients of the free water supply.
This is to ascertain whether the free water programme actually benefits the intended users, particularly the lower income earners, less fortunate individuals and families as well as ailing users that require long term medical assistance”
Currently, domestic premises in Selangor, with the exception of those premises connected to bulk water meters and using sub-meters, has been enjoying the free 20 cubic meters of water supply since 2008.
Majority of the households in Selangor do not pay for water usage less than 20 cubic meters, even though the amount to be paid is within their means.
“From the findings of the study, I believe consumers will support improvements to address any weaknesses and more focused subsidized assistance programme.” said Suhaimi.