Update Puncak Niaga’s raw water license terminated, given to KDEB

by **Cals** Mon 13 Jan 2014, 18:31

Update Puncak Niaga’s raw water license terminated, given to KDEB

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Monday, 13 January 2014 16:27

KUALA LUMPUR (Jan 13): Selangor Mentri Besar said he has directed that the raw water license granted to Puncak Niaga Holdings Bhd be terminated in favour of Kumpulan Darul Ehsan Berhad (KDEB), as the state plans its own water restructuring.

In a statement, Tan Sri Abdul Khalid Ibrahim said: “We have instructed the Selangor Water Management Authority to coordinate the issuance of raw water to be given to state-owned company, Kumpulan Darul Ehsan Berhad (KDEB), in line with the restructuring plans of Selangor's water industry.

“Accordingly, the raw water license which has been granted to concessionaires including Puncak Niaga will be terminated.”

In the press statement issued this afternoon, Khalid said the state government has ordered the Selangor water regulator Datuk Mohamad Roslan Sakiman to start the project Horas (Hybrid Off River Augmentation System) in Sungai Selangor, which he said is able to supply 600-700 million litres of clean water per day.

“With Horas, Selangor people will not be too dependent on the Langat 2 plant project and that the water consumers in Selangor, Kuala Lumpur and Putrajaya will get continuous water supply.”

According to the statement, the Horas system involves the accumulation of stormwater from Sungai Selangor in former mining area of Bestari Jaya. Its reservoir capacity is estimated to be four months “with no flow from the Selangor River during drought season”.

Khalid said the ground-breaking ceremony for the construction of Horas will take place soon and the state government will invite the National Water Services Commission to work together to implement the project.

“We are confident that the Federal Government could enforce Section 114 of the WSIA smoothly to make way for the restructuring of the water services industry in the state,” he said.

Companies expected to be involved in the 4.14-billion ringgit Langat 2 project include Puncak Niaga-linked companies and Gamuda Bhd.