Selangor water agreement to be reviewed (update)

Monday March 17, 2008
MYT 6:02:29 PM, Malaysiakini.

Selangor water agreement to be reviewed (update)

SHAH ALAM: The Selangor government will review the agreement signed between the state and Puncak Niaga Holdings Bhd allowing the company to operate, manage and maintain the Sungai Sireh water treatment plant in Tanjung Karang.

Mentri Besar Tan Sri Khalid Ibrahim said the agreement signed on March 7 seemed lopsided and would profit Puncak Niaga more than it would the state government or the people of Selangor.

"I have only looked at the agreement for the water treatment plant at a glance recently but it needs to be studied properly before reaching any decision," he told reporters at his official residence here Monday.

He said the matter needed to be discussed at the state executive council level as well before a decision on the next course of action could be made.

Khalid said he had asked the state legal advisor to write to Puncak Niaga and ask that the agreement be declassified so that it could be reviewed.

The signing of the agreement came into question as it was done after the state assembly had been dissolved and only a day before polling day.

State secretary Datuk Ramli Mahmud, who signed the agreement, later explained that the matter had been decided about a year ago and was effective April 1 but the signing of the agreement had been delayed until this year.

On the offer of free water for usage of up to 20 cubic metre in Selangor, Khalid said, it was only a matter of examining the calculations for the water tariff and finding ways to reduce the cost per unit of usage.

"If we can translate it to per unit cost and reduce it by a certain percentage, we can then take the money saved and pass it back to the people by way of free water,” he said.

He said the state government would not then have to pay any subsidies to the water distribution concessionaire Syarikat Bekalan Air Selangor (Syabas).

Khalid had earlier announced that consumers in Selangor will enjoy free water for usage of up to 20 cubic metres starting April.