KUALA LUMPUR: The Selangor state government needs to resume talks with Syarikat Pengeluaran Air Selangor (Splash) to complete the last piece of the puzzle in the state’s water consolidation exercise, Energy, Water and Green Technology Minister Datuk Seri Dr Maximus Ongkili said.

“The ball is [now] in the state government’s court,” he said when commenting on the long-delayed water asset consolidation exercise, adding that the state has 10 more months to complete the full integration of its water assets.

“They [Selangor government and Splash] need to resume talks,” Ongkili told The Edge Financial Daily at the Parliament lobby yesterday.

Ongkili reiterated that the federal government will not make any offer to the water concessionaires. The federal government would only be the “matchmaker” and “regulator” in the water restructuring exercise in Selangor.

When asked if a higher price should be offered to Splash, Ongkili said it was up to the Selangor government to make any offer.

Last week, Selangor Menteri Besar Mohamed Azmin Ali made clear his stance on the impasse in the water asset consolidation exercise, which had dragged on for several years. Azmin warned that the water concessionaires should not drag their feet in signing the agreement with the state government.

He said the state government would not side with the concessionaires and would deem their tardiness as preventing consumers and the people from benefiting from the restructuring.

The Selangor government controls a 30% stake in Splash through its investment arm Kumpulan Perangsang Selangor Bhd. Gamuda Bhd is the largest stakeholder in Splash with a 40% stake, while businessman Tan Sri Wan Azmi Wan Hamzah’s The Sweet Water Alliance Sdn Bhd holds the remaining 30% stake.

Gamuda and The Sweet Water Alliance had rejected the net offer of RM250.6 million by the state on the basis that it is undervaluing its growing asset  by 90%, as the price tag did not take into account future earnings that the water concessionaire would have foregone after the sale.

This article first appeared in The Edge Financial Daily, on November 13, 2014.