Six firms lose water contracts
KOTA KINABALU: The state government has decided to terminate the contracts of six companies operating 58 Water Treatment Plants (LRAs) throughout Sabah effective Jan 15, 2019.
Sabah Infrastructure Development Minister, Datuk Peter Anthony said the decision made through the cabinet meeting was because the government could not afford to pay the cost charged by all the companies as the rate was too high.
“Taking into account the various factors including the financial restraint from the government, we have made the decision to terminate all contracts on LRA Management Services under the “Outsource” contracts and all responsibilities on the operation and maintenance of the plants would be taken over by the Sabah State Water Department (JANS).
“The six companies concerned are Arawira Sdn Bhd, Yuda Water Sdn Bhd, Akal Kukuh Sdn Bhd, Sahabat Megajuta Sdn Bhd, Harmony Water Sdn Bhd, and BYT Vision Sdn Bhd,” he told reporters here yesterday.
With the termination of the contracts, he said, the state government could save more than RM1 billion because the government had to pay RM15 million per month for a period of 20 years based on the agreement signed with the previous government.
“All the companies concerned still had remaining contracts for 13 years and five months but the state government decided to terminate the contracts because if the operations of the plants were taken over by JANS, the state government could save considerable costs,”he said. Bernama