LAST_UPDATEFri, 20 Jul 2018 10pm

'Selangor Yet To Complete Its Water Resctructuring And Acquisition Of Splash'

KUALA LUMPUR: The government has insisted that the water restructuring and acquisition of Syarikat Pengeluar Air Selangor (Splash) by the Selangor government remains incomplete.

Energy, Green Technology and Water Ministry secretary-general Datuk Seri Dr Zaini Ujang said the negotiation between the state government and Splash on the takeover value was based only on a “willing buyer and willing seller” model.

He said it was premature to invoke Section 114 of the Water Services Industry Act 2006 and it needed to be used impartially and with due care.

“The water restructuring process is not a ‘cockerel and dowry’ affair and Selangor government has yet to offer a price for the takeover process.

“Thus the negotiation on the value is still ongoing and the acquisition has not even started,” he said in a statement today.

Zaini said section 114 only enabled the National Water Services Commission (Span) to assume control to manage the assets and carry out the business of the licensee to continue supplying water to the public.

He said it did not empower Span to dispose assets of the licensees or any other activity that was not in line with the purpose of the licence under the Act.

He said the role of Pengurusan Aset Air Bhd (PAAB) in the post-migration was to develop water assets for the water operators and lease back to them for operations at a reasonable lease rental given the prevailing low tariff.

“Water operators, with the approval of Span, have the option to construct, upgrade and /or refurbish new water assets using PAAB’s facility or any other financing facilities provided that the cost of financing is equivalent to or lower than PAAB’s,” he said.