Water assets in limbo again

by **Cals** Wed 23 Jul 2014, 13:07

Business & Markets 2014

Written by Cynthia Blemin & Kamarul Anwar of theedgemalaysia.com

Wednesday, 23 July 2014 08:36

KUALA LUMPUR: The Selangor state government would set to revise terms in the water consolidation exercise, should Datuk Seri Dr Wan Azizah Wan Ismail, the president of Parti Keadilan Rakyat (PKR), take over as menteri besar (MB) from Tan Sri Abdul Khalid Ibrahim.

“When Kak Wan (Wan Azizah) comes in the entire Selangor water restructuring deal will need to be relooked at, including the Langat 2 project that was signed in a hurry by the state government headed by Khalid,” said PKR strategic director Rafizi Ramli when contacted.

Rafizi told The Edge Financial Daily that the state government was planning to review all of the water agreements with the concessionaires including the memorandum of understanding (MoU) that was signed between both, the federal and state governments in February.

“It is too early to comment on the details but it is definite that there will be a change in value [of the water deals agreed upon with water concessionaires] and the variation,” he said.

According to Rafizi, the state government also wanted Abdul Khalid to withdraw from proceeding with the heads of agreement (HoA) that he announced last Wednesday.

The HoA is due to be signed with the federal government soon. The signing of the HoA will legally bid the terms agreed upon in the MoU.

Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili when contacted yesterday commented that it was “too early to say anything”.

Meanwhile, a representative from The Sweetwater Alliance Sdn Bhd, a 30% shareholder of Syarikat Bekalan Air Selangor Bhd (Splash), felt that it was too early to comment on the move. “However, we hope that Wan Azizah will take a more consolidative and consensual approach this time around,” he said.

However, Rafizi expressed concerns that Abdul Khalid would approve all the development orders (DO), which are believed to be about 100 in number, for the Langat 2 water project. Khalid has approved 16 as at May.

By signing the HoA , Rafizi pointed out that Abdul Khalid would further complicate matters for the new menteri besar.

Rafizi is one of three members of a special committee appointed by the Pakatan Rakyat to oversee the state’s water asset consolidation exercise that has been dragged for five years.

Rafizi, the Pandan MP is also known to be behind the “Kajang-move” in March, to pave the way for PKR de facto leader, Anwar Ibrahim, to become the Selangor Menteri Besar.

Yesterday Anwar announced that PKR officially proposed his spouse Wan Azizah to takeover Abdul Khalid’s position after chairing the PKR supreme council meeting.

Under the MoU, the Selangor government will takeover the operations of all four water concessionaires — Syabas, Konsortium Abass Sdn Bhd (Abass), Syarikat Pengeluar Air Selangor Sdn Bhd (Splash) and Puncak Niaga Sdn Bhd (PNSB) — for RM9.65 billion, which will be placed under Selangor’s state investment arm Kumpulan Darul Ehsan Bhd (KDEB).

So far three out of the four water concessionaires have accepted the state’s offer, except for Splash.

It is understood that the state government is still in the process of signing the HoA, said an industry source.

Although it is still an unknown if Wan Azizah would be able to oust Abdul Khalid from his post, political observers believe that Abdul Khalid is holding a trump card. He is seen as a favourite of the Selangor royalty.

In a statement yesterday, Abdul Khalid said he would not back down from his position as Selangor MB despite the party having nominated Wan Azizah as his replacement.

Abdul Khalid also said that he stands by the state constitution which has mapped out special conducts and processes in the appointment or replacement of the state leader.

“Until such process takes place and completes, I will continue to carry on my duties as the Selangor Menteri Besar with the utmost responsibility, trustworthiness and diligence — that was entrusted to me by the Selangor people who had chosen me through a valid process,” he added.

He also hoped that the people Selangor will not be easily influenced into believing hearsays that could be provocative and controversial in nature because there are procedures that would need to be adhered to as enshrined in the Selangor Constitution, before changing of a menteri besar.

Abdul Khalid also gave assurance to the Selangor people and investors that the issues at hand have not affected the state’s administrative system.

This article first appeared in The Edge Financial Daily, on July 23, 2014.