Taliworks receives offer letter
It is to settle outstanding receivables for water treatment plant
PETALING JAYA: Taliworks Corp Bhd’s unit Sungai Harmoni Sdn Bhd has received an offer letter to settle its outstanding receivables from its operations and maintenance of the first phase of Sungai Selangor Water Treatment Plant (SSP1).
The offer came following the water restructuring exercise in Selangor.
Taliworks said in a filing with Bursa Malaysia that the letter was issued by Pengurusan Air Selangor Sdn Bhd (Air Selangor).
The company said the letter set out the key terms of settlement between Air Selangor, Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) and Sungai Harmoni.
It also sets out the terms of the new operations and maintanence agreement (OMA) between Air Selangor and Sungai Harmoni.
Among the terms of the offer, Splash will settle the outstanding fees owed to Sungai Harmoni by paying the latter 90% of the amount under the SSP1 OMA via annual instalments.
It also said the bulk water supply rate (BSR) under the new agreement would be a five sen per cubic metre reduction to the exist- ing rate under the SSP1 OMA until the expiry of the agreement on Dec 31, 2019.
A BSR of 52.5 sen per cubic metre will apply for the seven-year extension from Jan 1, 2030, to Dec 31, 2036, in respect of Sungai Harmoni’s operations and maintanence of the SSP1, subject to the terms and conditions of the new OMA.
“To facilitate the conclusion of the water restructuring exercise, Sungai Harmoni is requested to enter into a termination and settlement agreement with Air Selangor and Splash in respect of its existing OMA for SSP1.
“It is also requested to enter into a new OMA for the continued operation and maintenance of SSP1 and terminate all other existing agreements relating to the SSP1 OMA,” it said.
Taliworks said its board of directors is reviewing the terms of the offer and would announce its decision in due course.
“Sungai Harmoni is required to revert with the acceptance of the offer by no later than 5pm on August 27, 2018 or such later date or time as may be determined by Air Selangor,” it said.