Putrajaya to invoke WSIA

12 March 2014

In the memorandum of understanding to solve water woes in Klang Valley between Selangor state and federal government, it was stated clearly that the federal government must keep its end of the bargain in return for all required authorization for Langat 2 water treatment plant to proceed.

Following the decision of three water concessionaires, namely Puncak Niaga Sdn Bhd, Syarikat Bekalan Air Selangor (SYABAS) and Syarikat Pengeluar Air Selangor Holdings (Splash) to reject Selangor state government’s takeover bid of RM9.65 billion, Selangor Menteri Besar Khalid Ibrahim had went to the Energy, Green Technology and Water Minister Maximus Ongliki.

The purpose is to ask the government to pursue the exercise its rights under the Water Services Industry Act 2006 (WSIA) to assist Selangor in acquiring all four water concessionaires at the price tag of RM9.65 billion.

In a joint statement, Khalid and Ongkili said the federal government shall now pursue the water industry restructuring exercise by invoking its power under WSIA as well as any other relevant acts, statutes or regulations.

“This includes invoking Section 114 of WSIA in order to address issues of national interest to ensure security, sustainability and viability of the water supply industry in Selangor, Kuala Lumpur and Putrajaya,” read the statement, which was issued after the duo meeting yesterday afternoon.

According to news report, only Selangor state government’s subsidiary Konsortium Abass Sdn Bhd (Abass) agreed to the offer made by the state government. –Source