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RM400m to overcome water woes in Klang Valley BY BERNAMA - 26 JULY 2016 @ 10:10 PM Facebook 34 Twitter Share 34 KUALA LUMPUR: Water woes in the Klang Valley will be solved in stages with the Selangor government providing an allocation of RM400 million. Menteri Besar Datuk Seri Mohamed Azmin Ali said the allocation would be used to replace old water pipes, covering a distance of 422km, which would be done in stages from today until 2019. He said the project, to be undertaken by Pengurusan Air Selangor Sdn Bhd (Air Selangor), was among the initiatives lined up to overcome water woes and supply disruption due to leaking or burst pipes, besides ensuring good quality of tap water. “A study conducted by Air Selangor found 84 hotspots for leaking and burst pipes. “For this year, 12 hotspots would be focused on starting with Taman Melawati,” he said when opening the Old Pipe Replacement in Selangor, Kuala Lumpur and Putrajaya 2016 programme here today. The first phase of the project would involve old pipes measuring 59.5 km and cost of RM50 million and it is expected to be completed by end of next year. The areas involved include Gombak Setia, Bandar Tun Razak, Persiaran Kayangan Shah Alam and Country Height Hulu Langat, Selangor. The menteri besar said the first phase of the project would benefit almost 48,000 consumers in the Klang Valley and Putrajaya. -– Bernama 216 reads Menteri Besar Datuk Seri Mohamed Azmin Ali said the allocation would be used to replace old water pipes, covering a distance of 422km, which would be done in stages from today until 2019. (File pix)

Read More : http://www.nst.com.my/news/2016/07/160844/rm400m-overcome-water-woes-klang-valley

SHAH ALAM: The long-drawn saga over the water restructuring deal between the Selangor and Federal governments has concluded after the final four agreements were signed between the two parties Tuesday evening.

The state's Pengurusan Aset Air Selangor (Air Selangor) and the Federal Government's Pengurusan Aset Air Berhad (PAAB) signed a set of agreements in accordance with provisions stipulated in the Master Agreement.

The four agreements, namely the Facilities Agreement, Lease Agreement, Settlement Agreement and Rights of Use Agreement were signed by Air Selangor chief executive officer Suhaimi Kamaral Zaman and PAAB chief executive officer Datuk Ahmad Faizal Abdul Rahman.

After the conclusion of the signing ceremony, Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili told a press conference that the signing was a major milestone in the restructuring of the Selangor, Kuala Lumpur and Putrajaya water industry.

"With the conclusion of the agreements, the Master Agreement can be enforced and subsequently the sale and purchase agreement for the Puncak Niaga Holdings Berhad (PNHB) assets will also be enforced to allow Air Selangor to takeover Puncak Niaga (M) Sdn Bhd (PNSB) and Syarikat Bekalan Air Selangor Sdn Bhd (Syabas),'' said Dr Ongkili.

He added Air Selangor had two weeks to take over PNSB and Syabas followed by the take over of Konsortium Abass Sdn Bhd within the next four months.

"The signatories have five months beginning today (Tuesday) to complete all conditions precedent (CP) including amendments to the Syabas concession agreement as well as conclude concession agreements related to PNSB and Abass,'' said Dr Ongkili.

He added this was to enable Air Selangor to hold the Facility License in Selangor and the Service License in Selangor, Kuala Lumpur and Putrajaya.

Selangor Mentri Besar Azmin Ali said the signing of the agreements allows the completion of the Master Agreement and the release of up to RM2bil from PAAB to Air Selangor to pay for the takeover of water concessionaire companies - Syabas, PNSB, Abass and Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash).

"In exchange, Air Selangor will be transferring up to RM2bil worth of water assets to PAAB, which will subsequently be leased back to Air Selangor,'' he said.

He added Air Selangor would be given the Facilities License as well as a Service License next year.

"The licenses will enable Air Selangor to provide holistic water supply services in Selangor, Kuala Lumpur and Putrajaya,'' he said adding that Air Selangor is expected to take over Syabas abd PNSB from Oct 1 onwards.

Out of the four concessionaires, all have agreed to the takeover expect Splash, which is disputing the amount offered.

Splash has also been given one-year grace period from the time the Master Agreement came into force to renegotiate terms with the Selangor government.

Out of the RM2bil to pay the concessionaire companies - RM1.68bil will go to PNSB, Syabas and Abbas whilst the remaining amount was offered to Splash.

Dr Ongkili said the Selangor state government would continue negotiations with Splash, and the Federal Government would only step in when it is required.

When asked about the dead end with Splash, Azmin said the state to settle everything within the stipulated time.

"We are given one year to conclude the whole exercise from 10th July (the date the Supplementary Agreement was signed) and the state has started initial discussions with Splash so hopefully we should be able to conclude the whole discussion before July next year,'' said Azmin.

He declined to reveal the amount that was being discussed with Splash.

Earlier in Kuala Selangor, Azmin said there would not be any more delays in the water restructuring exercise as everything had been concluded by both Federal and Selangor governments.

"I strongly believe that once the whole industry has been taken over by the state, we would be able manage the industry well and more effectively in the interest of the rakyat,'' said Azmin adding there would not be any water shortage or disruptions after that.

He said Air Selangor's main concern and concentration would be on way to arrest the problem of non-revenue water (NRW).

"We are going to address the issue of NRW which is still very high in Selangor at 35% compared to many other states,'' said Azmin.

Federal and Selangor government to conclude water deal on Tuesday 6 September 2015 @ 9:25 PM KUALA LUMPUR: The Federal and Selangor state government will conclude their water deal negotiation tomorrow. In statement the Energy, Green Technology and Water ministry said this will see the deal inked at a ceremony in Shah Alam. It will see four agreements under the restructuring of Selangor’s water services industry sealed between Pengurusan Aset Air Berhad (PAAB) and Pengurusan Air Selangor Sdn. Bhd. (Air Selangor). “ The four agreements are the Facilities Agreement, Lease Agreement, Rights of Use Agreement and Settlement Agreement, which are Condition Precedents to effect the Master Agreement for the restructuring exercise, “ it said in a statement today. At the same event, Energy, Green Technology and Water Minister Datuk Seri Panglima Dr Maximus Ongkili will hand over to Selangor Menteri Besar Mohamed Azmin Ali the Facilities and Service Licenses issued to Air Selangor. “This is the final Condition Precedent to the Master Agreement that needs to be fulfilled by the Federal Government,” it said. The statement from the ministry said that with the conclusion of the agreements and handing over of the licenses, the critical Condition Precedents would be completed and fulfilled. This means the Master Agreement will take effect from Sept. 9, 2015, it added. “With the Master Agreement in effect, Air Selangor can now hand over the required land titles with value of up to RM2 billion to PAAB in order for PAAB to provide the necessary funds for Air Selangor to take over the Selangor water concessionaires,” it said.

Read More : http://www.nst.com.my/news/2015/09/federal-and-selangor-government-conclude-water-deal-tuesday

Takeover of water supply management by Air Selangor can be finalised in 60 days - Ongkili
Bernama | Published on August 05, 2015 07:52 MYT
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Takeover of water supply management by Air Selangor can be finalised in 60 days - Ongkili
He said another matter to be resolved was the question of issuing an operating licence by SPAN.
SERDANG: The federal government is optimistic that the process of handing over the management of water supply services to Pengurusan Air Selangor Sdn Bhd can be settled within 60 days as planned, says Energy, Green Technology and Water Minister, Datuk Seri Dr Maximus Ongkili.

He said a series of meetings were held between the ministry and Selangor government officials to discuss and resolve matters before the hand-over.

He said matters relating to the schedule of handing over water management in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya to the Selangor government through Air Selangor were also discussed at the joint meeting with ministry officials, Tuesday morning.

"In our view, with the cooperation given by the respective parties, we should be able to complete the transfer as scheduled," he told a press conference during the ministry's Hari Raya celebration held at the Malaysia Agro Exposition Park Serdang (MAEPS).

He was commenting on developments on the Water Supply Restructuring Agreement between the federal government and Selangor government following the signing of the Supplementary Agreement to the Master Agreement on July 10.

The signing of the Supplementary Agreement involving the federal government, Selangor government, Pengurusan Aset Air Berhad (PAAB) and Air Selangor saw the parties to the agreement given 60 days to fulfil the Condition Precedents (CPs) to the Master Agreement.

Ongkili said the authorities were still required to sign several documents, including the facility agreement as a PAAB requirement to issue an allocation of RM1.65 billion to allow Air Selangor to take over the water concessionaires including Syarikat Bekalan Air Selangor (Syabas).

He said another matter to be resolved was the question of issuing an operating licence by the National Water Services Commission (SPAN) to the new operator, that was, whether to continue with the existing licence or to make a replacement.

Ongkili also said that the state government had not informed the ministry on the Selangor Economic Action Council's decision on approving several applications by the ministry in ensuring that the Langat 2 water treatment plant and its distribution system (LRAL2) project would run smoothly.
Press reports had quoted Menteri Besar Mohamad Azmin Ali as saying that among the approvals decided on July 30, was permission for the project planning and implementation of project works at the sites involved.

According to Azmin, the approvals involved applications from the Land Office, Kajang Municipal Council (MPKj) and the State Forestry Department.

The Selangor water industry will see the operations takeover and maintenance of water treatment facilities as well to increase the capacity of the facilities by using the latest technology.

KUALA LUMPUR, July 10, 2015:

A supplemental agreement for restructuring and consolidation of the Selangor, Kuala Lumpur and Putrajaya water services industry was signed at the Deputy Prime Minister’s office today.

The signing of the supplementary agreement to the master agreement, dated Sept 12 last year, follows the conclusion of the Selangor state government’s negotiations with the government.

In a statement today, Selangor Menteri Besar Mohamed Azmin Ali said the state government, via its wholly-owned water company Air Selangor, will restructure and consolidate the water services industry to ensure the provision of efficient, value for money and holistic water services from treatment to distribution of water supply to consumers.

“Once the take-over and consolidation of the private water concession companies under state-owned entity Air Selangor is completed, all efforts will be focused on further improving the water treatment and distribution systems as well the overall water supply services.

“The journey begins now to further improve the overall water services, to reduce the Non-Revenue Water (NRW) and more critically to ensure sufficient water supply to consumers,” said Azmin.

Azmin also said that the Selangor water industry will see the operations takeover and maintenance of water treatment facilities as well to increase the capacity of the facilities by using the latest technology.

The Federal Government and state government together with Pengurusan Aset Air Berhad (PAAB) and Pengurusan Air Selangor Sdn Bhd (Air Selangor) had previously signed the master agreement as part of the efforts to restructure and consolidate the water supply services in Selangor and the Federal Territory of Kuala Lumpur and Putrajaya.

Puncak Niaga agrees to takeover by Selangor, now only one concessionaire holds out

BY SHERIDAN MAHAVERA

Published: 16 May 2014 6:08 PM

Selangor’s efforts to restructure its troubled water industry received a major boost today when it was announced that the industry’s two biggest companies have agreed to the state government’s offer of a takeover.

This brings the number of companies who have agreed to the takeover to three, while the remaining firm, Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH), is still holding out on the state government’s offer.

The Federal government and the Selangor administration in a joint statement said Puncak Niaga Holdings Berhad (PNHB) had agreed to Selangor’s offer to take over Puncak Niaga Sdn Bhd (PNSB) and Syarikat Bekalan Air Selangor Sdn Bhd (Syabas).

The state government will be taking over the equity, assets and liabilities of PNSB and Syabas for RM2.47bilion and RM3.11 billion respectively.

PNSB manages the lion’s share of 34 water treatment plants all over Selangor which processes raw water for the residents of Selangor, Kuala Lumpur and Putrajaya.

Syabas, on the other hand, is in charge of the whole pipe distribution network from the treatment plants to the consumers.

The takeover of the water industry which was privatised in the 1990s had been an election promise by the Pakatan Rakyat-led Selangor government.

The state administration said that the privatised industry had led to consumers being charged high rates for water while they endured sub-standard service.

Since last year, the Selangor government had offered RM9.65 billion to take over all four companies and concessionaires.

After only one company, Konsortium Abaas Sdn Bhd (Abaas) accepted the offer, Selangor made a deal with Putrajaya on February 26 for help in taking over all four through legal means.

In exchange for Putrajaya using the Water Services Industry Act 2006 (WSIA) to take over all four, Selangor would approve the construction of the RM3.6 billion Langat 2 water treatment plant.

But with PNSB and Syabas’s acceptance of the offer, both the federal and state governments have postponed using WSIA, said today’s statement.

The statement was jointly signed by Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili and Tan Sri Abdul Khalid Ibrahim.

“It must be stressed that the equity, assets and liabilities of PNSB, Syabas and Abaas which totals RM6.57 billion, is not more than what was previously offered by Selangor (to them),” the statement said.

It also said the formal agreement to a takeover of PNSB and Syabas was conditional on the acceptance of the company’s shareholders in an extraordinary general meeting.

Both companies are controlled by PNHB which has been linked to former Selangor Umno treasurer Tan Sri Rozali Ismail.

“At the same time, since SPLASH’s shareholders have still not agreed to Selangor’s offer, the state and the Federal governments have agreed to review the price of bulk water which the company sells to Selangor.

“But Selangor is still open to taking over SPLASH if its shareholders agree to the price offered by Selangor,” the statement said.

Selangor also said it would speed up the process of granting permits and taking over land for the Langat 2 project so that work can begin as soon as possible. – May 16, 2014.
- See more at: http://www.themalaysianinsider.com/malaysia/article/now-three-companies-agree-to-selangors-takeover-of-water-industry#sthash.DhnpQyq4.dpuf

6,423km-long old water pipelines need repair - Syabas
Bernama | Published on July 02, 2013 16:45 MYT
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6,423km-long old water pipelines need repair - Syabas

KUALA LUMPUR: Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) has identified 6,423km-long old water pipelines in Kuala Lumpur, Selangor and Putrajaya that are clearly in need of repair.

Its Project and Non-Revenue Water Division executive director Yusof Badawi said of the total, 812km-long of the pipelines had already been repaired, involving a cost of RM400 million.

"The three states have a total of 25,650km of existing water pipelines, 6,423km of which were old and the repair works on these old pipelines had begun since 2005.

"However, since 2008 until now, the project had to be called off as Syabas' capital expenditure (capex) has been frozen by the Selangor government to make way for the restructuring of the water services industry in the three states," he told reporters at a briefing session on old pipeline replacement project in Kampung Baru here Tuesday.

Also present was National Water Services Commission (SPAN) Central Region senior executive Mohammed Amin Mohd Hanifiah.

Yusof said ever since its capex been frozen, Syabas could not implement the project to replace the remaining 5,611km of old water pipelines.

"Nevertheless, Syabas has taken the initiative to reduce the possibility of burst pipes which can cause water disruption by implementing pipeline replacement programme in 30 areas deemed critical in Kuala Lumpur, Selangor and Putrajaya," he said.
Among the 30 critical areas are Klang, Ulu Bernam, Kuala Selangor, Kampung Baru, Rawang, Taman Maluri, Petaling Jaya, Puchong, Ampang, Pudu and Hulu Langat.

The first phase of the pipeline replacement project, which began in 2011 and would end in 2014, involved 118.74km of pipes and a cost of RM95 million, while the second phase (2013-2015) would involve 91.76km of pipes and a cost of RM75 million.

KUALA LUMPUR, March 9 — Selangor has revoked its controversial water agreement with Putrajaya signed back in September last year, following the federal government’s alleged failure to comply with pre-conditions set out by the state government.

Selangor Mentri Besar Azmin Ali said the master agreement signed by his predecessor Tan Sri Khalid Ibrahim could not be carried out as the federal government had already been granted enough time to adhere to Selangor’s conditions.

“The master agreement has collapsed. No more. The plan has collapsed,” Azmin told Malay Mail Online when contacted.

Asked to elaborate on the pre-conditions that Putrajaya had purportedly failed to adhere to, Azmin said he will hold a press conference in Parliament tomorrow.

“Two extensions were given previously to the federal government to honour the agreement. One on January 9 and then another extension on February 9 this year.

“The federal government wanted another extension today on March 9, but I have said no,” the Selangor MB explained.

Earlier in Parliament, Azmin told reporters that the “next move is up to the federal government” now that Selangor has decided to cancel the water deal.

“The ball is in their court,” Azmin said.

“It’s the same position as the state government’s stand on the Kinrara-Damansara Expressway (Kidex),” he added.

The first-term mentri besar had previously demanded that Putrajaya publicly disclose the details of the water agreement as part of his pledge for accountability to Selangor voters.

He had said that a full disclosure of the agreement signed by his predecessor and Putrajaya was necessary to justify the possible impact of the deal on consumers.

Last year, Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili said that his ministry would not disclose the contents of the water deal, following legal advice from the Attorney-General’s Chambers (AGC).

The water deal was among the given reasons for Khalid’s removal as MB. Azmin previously said he would review the agreement after he took over as the state’s chief executive.

Under the water agreement, Selangor was meant to infuse a new special purpose vehicle with RM14.92 billion in assets to manage the water restructuring exercise with Putrajaya.

The federal government was also to provide RM2 billion to help offset the state’s cost of taking over the four concessionaires — Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Puncak Niaga Sdn Bhd, Konsortium Abbas Sdn Bhd and Syarikat Pengeluar Air Selangor Sdn Bhd (SPLASH).

In return, Selangor would provide all necessary approvals for the construction of the Langat 2 water treatment plant that it had previously resisted.
- See more at: http://www.themalaymailonline.com/malaysia/article/selangor-government-cancels-water-deal-with-putrajaya#sthash.rHVuBll1.dpuf

Selangor water deal may be delayed further: Azmin By Nuradzimmah Daim - 7 July 2015 @ 4:08 PM KUALA LUMPUR: The Selangor water restructuring effort has hit another snag. Selangor Menteri Besar Mohamed Azmin Ali said the water deal which was supposed to be finalised soon might be delayed further. "This is because, we (state government) had received a notice from the Attorney-General's Chambers today saying that water assets listed by the state government (in the agreement) must include land beneath and over the pipes. "It was previously agreed that the assets owned by the water concessionaires listed under the deal would not include lands in the state," he said when met at the Parliament earlier. He added that he had sought help from both Prime Minister Datuk Seri Najib Razak and Deputy Prime Minister Tan Sri Muhyiddin Yassin on the water restructuring exercise for the state. It was previously reported that Azmin has voiced its dissatisfaction over the Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili had said ministry was finalising the supplementary agreement, which included the revised list of assets owned by Selangor after numerous delays. Azmin was previously quoted as saying that the state government could not finalise the deal with the federal government as it did not agree to the term in the master agreement which stated that listed assets would include the land above and below the 26,000km of pipes belonging to the water concessionaires.

Read More : http://www.nst.com.my/node/91196