Friday 29 Mar 2024
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KUALA LUMPUR (Mar 13): The Ministry of Energy, Green Technology and Water (KeTTHA) has come out to say it is "still very much committed" in ensuring the success of the master agreement signed with the Selangor state government on the restructuring of the Selangor water supply industry.

In a statement today, the ministry said it continues to engage with the Selangor government to resume talks and extend the cut-off date of the master agreement signed among the federal government, the Selangor government, Pengurusan Aset Air Bhd (PAAB) and Pengurusan Air Selangor Sdn Bhd (Air Selangor).

"In line with this, the minister (Datuk Seri Dr Maximus Johnity Ongkili) has yesterday written a letter to Selangor Menteri Besar Mohamed Azmin Ali asking the latter to rethink his decision to allow the master agreement to lapse.

"The letter also requested for a meeting between the two sides at the officers level as well as between the minister and menteri besar, as soon as possible," said KeTTHA.

On Monday, Mohamed Azmin confirmed a report by The Edge Financial Daily that the master agreement to restructure the state's water supply industry will lapse on that day as no further extension will be given.

Mohamed Azmin had said this was because the federal government had no intention of honouring the master agreement that was signed last year by his predecessor Tan Sri Abdul Khalid Ibrahim.

Meanwhile, in response to news reports on the federal government insisting on getting the land ownership from Selangor, KeTTHA said the land covering the 26,000km of pipes was never a central issue.

It explained that components such as the water treatment plant, pumping stations and reservoirs that are classified as landed and can be alienated by the state government.

“Similar to previous restructuring exercises with six other states, the Master Agreement states that assets are to be transferred to PAAB together with the land where the assets are situated.

“The assets will then be leased out to the water services operator (Air Selangor) for 45 years, after which the assets and related land will be returned to the state,” it added.

KeTTHA also said it is impossible to alienate pipelines situated at reserved land and said that it is sufficient for the Selangor government to grant access or rights to the pipes in order for PAAB as the beneficial owner to lease back to Air Selangor, as per the master agreement.

“The statement by the Selangor menteri besar that Selangor’s sovereignty is jeopardised because the federal government insists it wants land covering 26,000 km of pipe area in Selangor is confusing and worries the rakyat of Selangor,” it said.

On whether the federal government will invoke Section 114 of the Water and Services Industry Act 2006 to resolve the dispute, the ministry said it is “an instrument of last resort when negotiations fail and national interests are jeopardised".
 

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