The Selangor state government is assuming that the federal government has no objections to the state’s takeover of water concessionaire Syarikat Bekalan Air Selangor (Syabas), based on recent correspondence between the two governments.
Mentri Besar Tan Sri Khalid Ibrahim said he had sent a letter on September 14 to Energy, Green Technology and Water Minister Datuk Seri Peter Chinto outline the state government’s intention of pursuing the water services industry restructuring exercise.
The letter was written in reply to an earlier correspondence from Chin on August 28.
A copy of the letter was made available to reporters, with Khalid welcoming Chin’s encouragement to the state government to continue negotiations with concession companies.
An excerpt of the letter read: “We take it from your expression of support of such negotiations that the federal government, in its capacity as the holder of the old Golden Shares in Syabas, would not object to the other shareholders of Syabas accepting the proposal of the Selangor state government for the acquisition of their shares and represents the federal government’s consent under Section 109 of the Water Services Industry Act (WSIA) to the acquisition of shares in the concessiona companies.”
“If the minister and his ministry does not respond negatively against our correspondence within 14 days, I will assume that the ministry has no objections to me continuing the restructuring,” Khalid told reporters after chairing the state exco meeting on Wednesday.
He added that he would announce the state government’s new offer to acquire water assets in the state from four water concessionaires at the end of the month.
Khalid said in the letter, he also voiced the Selangor government’s disappointment of with the federal government’s attitude, which had “never supported and assisted” in starting negotiations with concession companies although it was clearly specified under the WSIA.
The four concessionaires involved in the exercise are Syarikat Pengeluar Air Selangor (Splash), Konsortium Abbas, Syarikat Bekalan Air Selangor (Syabas) and Puncak Niaga.
In 2009, the state government first made a bid of RM5.7bil, but it was rejected by all the players. A subsequent offer of RM9.2bil was made last year but it was rejected by Puncak Niaga and Syabas.
