February 12, 2009
Selangor to take over Water Concessionaires’ Assets
I will be putting up the Selangor press statements on my blog. The first one here is on an issue that is really quite an urgent one: the restructuring of the Selangor state’s water industry. I hope people will understand the importance of this whole deal. There’ll be a public briefing to be held soon to clarify matters. I’m looking forward to it.
STATE GOVERNMENT IS PREPARED TO TAKE OVER SELANGOR WATER CONCESSIONAIRE’S ASSETS
SHAH ALAM – The Selangor State Government is serious in ensuring that the restructuring of the water services industry in Selangor is implemented effectively, to provide maximum benefit to the people.
After six months of being engaged in the process of restructuring the water industry that has involved multiple parties, the State government is now ready to make an offer to take over the assets and equity owned by four water concession companies.
The State Executive Council has agreed today to release the offer letters within these two days to the four concessionaires, which are Konsortium ABASS Sdn Bhd (ABASS), Puncak Niaga (M) Sdn Bhd, Syarikat Pengeluara Air Selangor Holdings Berhad (SPLASH) and Syarikat Bekalan Air Selangor (SYABAS).
Before making this decision, the State Government, through its Water Review Panel that was established to review the restructuring process of the water industry in Selangor, has conducted a detailed study into the valuation and calculation of all companies’ assets and equity. It must be stressed that public interest was of primary importance when making this decision.
The State Government’s offer to all concession companies is one that is fair, taking into account the considerations of all stakeholders and will not negatively impact any of them. The rate of return and profit that will be earned by the companies is considered as fair.
It is the hope of the State Government that all parties will agree with this offer, in order that the restructuring process of the water services industry in Selangor is implemented before 31st of March, at the request of the Ministry of Energy, Water and Communications. The co-operation of all would avoid any increase in water tariffs, which if implemented would burden the rakyat especially during an impending economic slowdown.
The State Government is aware that the restructuring of the water industry in Selangor affects its residents and feels that the rakyat has a right to understand the issues involved. To that end, the Selangor Menteri Besar’s Office will hold a Public Briefing on a date to be soon announced. The Briefing is to provide updates and information on the situation to all stakeholders in the state, especially since the issue is one that needs complex analysis and explanation.
The public will then receive background explanations on the restructuring process of the water industry in Selangor, with relevant information, and the direction the State Government is headed in the entire process.
The Briefing is expected to be attended by industries affected by the water industry, policy makers at state and national level, civil society, non-governmental organizations, academicians, the private sector and members of the public.
PEJABAT DATO’ MENTERI BESAR SELANGOR
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