SHAH ALAM: Selangor residents will have to brace for a water tariff hike once the Selangor government takes over all four of the state’s water concessionaires.
Menteri Besar Mohamed Azmin Ali said there will definitely be cost implications to ensure a more effective water service but said the tariff revision will not burden the people.
“The state’s stand is to ensure that any water tariff hike will not burden the people. This is why we do not want the water services industry to be privatised and wanted it to be returned to the state government,” he told the Selangor state assembly, here, today.
Azmin (PKR - Bukit Antarabangsa) was answering an additional question from Mat Nadzari Ahmad Dahlan (Umno - Batang Kali) who wanted to know how the state planned to raise funds to finalise the restructuring of Selangor’s water industry and if there will be an increase in the water tariff.
The restructuring of Selangor’s water industry may cost more than the earlier estimate as Syarikat Pengeluar Air Sungai Selangor (Splash) has rejected the state’s latest offer of RM250 million to take over the company.
Pengurusan Air Selangor Sdn Bhd has been given 12 months until September next year to conclude negotiations with Splash to take over the last of the four water concessionaires in the state.
Selangor has allocated RM2 billion in water restructuring funds to take over Puncak Niaga Sdn Bhd (Puncak Niaga), Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Konsortium Abass Sdn Bhd (Abass) and Splash.
Azmin said the state has spent RM1.68 billion to takeover Puncak Niaga (RM1.07 billion), Syabas (RM0.52 billion) and Abass (RM0.09 billion) and has appointed an independent valuer to give an estimate of the quantum to be paid to Splash.
During the last state assembly session in August, Azmin did not rule out the possibility that the water tariff in the state would be increased after the completion of the water restructuring exercise.
However, former Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim said the water tariff in Selangor should not be increased if the state government was not paying more than RM9.75 billion for acquisition in equity from the four water concessionaires, including the RM2 billion water restructuring fund.