SELANGOR OFFER SET TO BREAK IMPASSE
State govt tabling RM2.55 billion offer to take over Splash
THE 10-year impasse in the restructuring of Selangor’s water infrastructure looks set to end with the state government tabling a RM2.55 billion offer to take over Syarikat Pengeluar Air Selangor (Splash).
Menteri Besar Amirudin Shari described the deal as “historic” and said it would signal an end to the deadlock in the state’s water industry.
Splash, he said, had agreed in principle to the offer, but it was subject to approval from its shareholders, among others.
He said the deal was the outcome of a year’s worth of negotiations between the state government and Splash.
“The agreement for RM2.55 billion is a 28 per cent reduction from the net book value of RM3.54 billion as at June 30.
“The takeover does not involve any financial allocation from the state government’s funds. Air Selangor (Pengurusan Air Selangor Sdn Bhd) will make an initial payment of RM1.9 billion. The remaining RM650 million will be paid in stages over the next nine years.”
He said the takeover would resolve the outstanding debts incurred by Syabas (a subsidiary of Air Selangor) from Splash for the purchase of treated water. The debt stood at RM4.7 billion as at June 30.
He said the state government would, in the future, set the water tariff at a rate that would not burden the people.
Amirudin yesterday witnessed the handing over of the offer letter from Air Selangor chief executive officer Suhaimi Kamaralzaman to Splash chairman Tan Sri Wan Azmi Wan Hamzah here.
Pakatan Harapan had, in its 14th General Election manifesto, pledged to resolve Selangor’s water issue within 100 days.
The restructuring of Selangor’s water industry was prolonged following the failure of the state administration and previous Barisan Nasional government to agree on the takeover value.
The issue over how much it would cost to acquire Splash resurfaced last Saturday, when Water, Land and Natural Resources Minister Dr Xavier Jayakumar brushed aside a foreign media report suggesting that the government was set to pay RM1.9 billion for the takeover of Splash.
Singapore’s Straits Times had reported that a joint funding deal had been struck, and that the total buyout was set at between RM2.5 billion and RM2.7 billion, and the state government was expected to pay between RM600 million and RM800 million.
Former prime minister Datuk Seri Najib Razak had on Wednesday said the state government would buy Splash for RM2.7 billion.
In response, Amirudin, on Thursday, announced that the impasse over the water deal had been resolved. He said the Splash takeover’s cost would be lower than RM2.7 billion.
He accused the previous Federal Government of preventing the state government and its water industry from using the new Langat 2 Water Treatment Plant.
He said the hindrance had impeded the process to use Langat 2 and affected more than 700 development projects approved by the state government.
However, he said following the change in government, the earlier decisions were annulled and the state government could now supply clean water to more than 1,000 homes by 2020.