‘Crisis can be resolved if state govt adopts system’
PUTRAJAYA: The Klang Valley water crisis will continue as long as the PKR-led Selangor government fails to take action to remedy the problem.
Energy, Green Technology and Water Ministry secretary-general Datuk Seri Dr Zaini Ujang said the crisis would be resolved in the long run only if the state government migrated its water supply management system to a new and more organised system under the framework of the National Water Services Industry Act (WSIA) 2006.
Zaini said only by migrating to the new system would infrastructure be improved and water treatment plants see an increase in capacity.
Through WSIA, he said, the task of developing water assets was carried out by Pengurusan Aset Air Bhd (PAAB), which was owned fully by Ministry of Finance Incorporated. PAAB is responsible for obtaining funds to build water treatment plants, as well as building and replacing infrastructure.
He said only by migrating to the system that water concessionaires in Selangor would be owned fully by the state government via an equity takeover in Syarikat Pengeluaran Air Sungai Selangor Sdn Bhd (SPLASH), facilitated by PAAB.
The Selangor government, via its fully-owned subsidiary Pengurusan Air Selangor Sdn Bhd (AIS), owns only a 30 per cent equity in SPLASH. Once the migration process is finalised, AIS will own 100 per cent interest in SPLASH.
Zaini said, if the migration was executed, AIS would conduct only supply operations.
“That is why we (Federal Government) are asking for this and are having discussions to resolve the migration issue. We are working towards making the migration happen.
“What migration means, in this context, is the company (the operator) will not have to seek funds to build new assets, including new treatment plants,” he told the New Straits Times Press.
He said to simplify the process, the Selangor government must make an offer to SPLASH to take over the remaining 70 per cent equity at a rate agreed upon by both parties. The Federal Government acts only as a facilitator based on a “willing seller and willing buyer” principle.
Zaini said, the state government had no choice but to carry out the migration, especially given the current situation, where SPLASH had a payment issue with AIS.
He said the Federal Government had allocated RM3.5 billion for the construction of a tunnel two years ago, as well as the Sungai Langat 2 Water Treatment Plant which could accommodate 1,130 million litres per day for additional water supply for Selangor.