Selangor will resume negotiations with the four water concessionaires in the state to kick off its water supply restructuring scheme.
The state government will form a special committee, headed by the state secretary, to finalise the takeover latest by September 2012, Menteri Besar Abdul Khalid Ibrahim said in a statement today.
“Selangor welcomes the federal government decision in agreeing with the state government going ahead with the restructuring.”
“The state government has been willing to implement the restructuring for a long time. Therefore, the state will call the four concessionaires to resolve the takeover of their concessions at a reasonable market price,” said Khalid.
If the concessionaires were not willing to take up the price offered by the state, they were welcome to refer this to an independent arbitration body to set the price.
“The state government will abide by the decision of the arbitrators. “
“The state will also propose to Pengurusan Aset Air Bhd and the Energy, Green Technology and Water Ministry to ensure that the leasing of the water assets and assumption of water industry liabilities are simultaneously resolved,” Khalid said.
However, the committee overseeing Syarikat Bekalan Selangor Air Sdn Bhd (Syabas) would continue with its task, he added.
Malaysia People are not positive with the latest development as Khalid’s statement is a repetition of his past failures in buying the water assets from the respective water concessionaires.
To recap, the Selangor government had commenced the buying negotiation with the water concessionaires 4 years ago. However, the restructuring exercise had turned ugly and become a blaming exercise when the Selangor government failed to offer a reasonable price. Even the market analysts teased the Selangor government’s offer price was insincere and merely a political show.
Malaysia People urge the Selangor government not to repeat its past mistakes which had caused the threatening water shortage in Selangor now. Malaysia People believe the water restructuring would have been completed long time ago if the Selangor government offered half of the valuation of Talam’s lands to the water concessionaires.