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Water, Land and Natural Resources Minister Dr Xavier Jayakumar, his deputy Tengku Zulpuri Shah Raja Puji and Selangor Menteri Besar Amirudin Shari witness the Memorandum of Understanding between Energy, Technology, Science, Climate Change and Environment Ministry secretary-general Datuk Dr Tan Yew Chong and Pengurusan Aset Air Berhad (PAAB) hief executive officer Abdul Hadi Ali in Putrajaya. -NSTP/MOHD FADLI HAMZAH

PUTRAJAYA: Pengurusan Air Selangor Sdn Bhd (Air Selangor) will operate as the sole concessionaire to manage water supply services in Selangor, Kuala Lumpur and Putrajaya beginning April 1.

This was after it had successfully acquired Puncak Niaga (M) Sdn Bhd, Syarikat Bekalan Air Selangor Sdn Bhd (SYABAS) and Konsortium ABASS Sdn Bhd (ABASS) in 2015 and Syarikat Pengeluar Air Selangor Holdings (Splash) which was acquired last August.

Water, Land and Natural Resources Minister Dr Xavier Jayakumar also assured that there will not be any hiccups in the transition come April.

“There will not be any delay, there shouldn’t be any hiccups as everything has been settled, the amount has been agreed.

“We have also got approval from the Cabinet for Pengurusan Aset Air Berhad (PAAB) to buy over the assets from Splash and then lease it out back to Air Selangor.

“So all the paper work has been done and the approvals are on the table. We just need to go through the process of having the business model signed and the old asset to be handed over to Air Selangor on April 1,” he told reporters today.

Dr Xavier was met earlier at the signing of the Third Supplementary Agreement to the Water Restructuring Master Agreement for Selangor, Kuala Lumpur and Putrajaya.

The agreement was signed by PAAB acting chief executive officer Abdul Hadi Ali, Air Selangor chief executive officer Suhaimi Kamaralzaman, Energy, Technology, Science, Climate Change and Environment Ministry secretary-general Datuk Dr Tan Yew Chong and Selangor State Secretary Datuk Mohd Amin Ahmad Ahya.

The signing was witnessed by Xavier and Selangor Menteri Besar Amirudin Shari.

Through this agreement, the federal government through PAAB has agreed to provide funding amounting to RM1.9 billion to Air Selangor to take over Splash.

“This restructuring process when concluded will allow Air Selangor to solely operate treatment activities and water disbursement in a holistic manner.

“It also can focus fully on the improvement of effectiveness and efficiency,” he added.

It was reported that the first and second supplementary agreements were signed on July 10, 2017, and Sept 21, 2017 respectively.

Air Selangor’s operation will be monitored by National Water Services Commission (SPAN) under the Water Services Industry Act 2006 (655 Act), he added.

“SPAN will play a role as an education centre for water usage, source and preservation in the country,” he said.

When asked if other states had undertaken the water restructuring process, he said only Perlis, Pahang, Kedah and Terengganu have yet to do it.

Meanwhile, Amirudin said Air Selangor had also targeted RM30 billion for capital expenditure (capex) model which would be paid in 30 years beginning this year with the finalisation of the restructuring process.

“This is to ensure water supply and increase water management efficiency for the people in Selangor, Kuala Lumpur and Putrajaya.

“The Capex investment programmes are planned in accordance to the operational strategic plans, designed to fulfill the needs of the future,” he said, adding that Air Selangor would acquire Splash for RM2.55 billion and the payment of RM1.9 billion will be paid first to acquisition.

“The remaining RM650mil will be paid over a nine-year period,” he said.

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