PAAB to make takeover offers for Selangor water assets

PAAB to make takeover offers for Selangor water assets
By Zaidi Isham Ismail
Published: 2009/02/19

PENGURUSAN Aset Air Bhd (PAAB) will make direct offers to take over Selangor's water assets from its four concessionaires, bypassing the state government.This is because the state government has not made much progress since it was allowed by the federal government to spearhead efforts to restructure the water industry.The federal government wants to revamp the water industry by taking over all water assets in Malaysia. The industry has been plagued by funding woes, different rates across states, and various business models.People in Selangor risk paying 35 per cent more for water if the state fails to meet a March 31 deadline to transfer its water assets to PAAB.

"Any delays will cause the public to suffer as this is basic public utility," National Water Services Commission (SPAN) chief executive officer Datuk Teo Yen Hua said.PAAB, which is wholly-owned by the Finance Ministry, has been tasked to take over some of the country's water assets and liabi-lities owned by water concession companies.Selangor had offered RM5.7 billion to its four water concession companies.The four operators are Syarikat Pengeluar Air Selangor Holdings Bhd, Puncak Niaga (M) Sdn Bhd, Syarikat Bekalan Air Selangor Sdn Bhd and Konsortium ABASS Sdn Bhd.It is understood that they are not happy because the offer price is too low and they need to pay back loans.Teo said the issue has to be resolved fast as negotiations have been dragging since early last year at the expense of the people.

"The power of negotiations is in our hands and by March 31 we will start moving in and resolve issues. Right now we can't even discuss the terms which are unacceptable to the firms because we are not even involved in the negotiating process," said Teo.