KUALA LUMPUR (Mar 7):  Selangor Menteri Besar Mohamed Azmin Ali has confirmed that the master agreeement to restructure the state's water supply industry will lapse today as no further extension will be given.

Mohamed Azmin said the Selangor state government had decided not to extend the agreement until March 31 this year following a request by the federal government. Mohamed Azmin 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.
 
"On our part, we decided to cancel and not to extend the agreement," Mohamed Azmin told reporters at the parliament lobby today.

This confirms a report today by The Edge Financial Daily (Edge FD). Quoting sources, Edge FD  reported that the Selangor state government was unlikely to grant the third extension for the master water agreement.

The master agreement was signed on Sept 12, 2014 to restructure Selangor's water supply.

Under the agreement, new entity Air Selangor Sdn Bhd will take over the operations and maintenance of the state's water-treatment plants and water-supply services which are currently managed by four concessionaires.

The concessionaires are Syarikat Pengeluar Air Sungai Selangor Sdn Bhd, Puncak Niaga (M) Sdn Bhd, Syarikat Bekalan Air Selangor Sdn Bhd and Konsortium Abass Sdn Bhd.

The master agreement was initially intended to be finalised on Jan 12 this year (2015). The matter was postponed to Feb 9 and again to March 9 following the transfer of water assets between the state and federal governments.

On the controversial Kinrara-Damansara Expressway (Kidex), Mohamed Azmin said the state government had not changed its decision on the development of the project.

Mohamed Azmin had on Feb 16 this year announced the Selangor government had scrapped the the RM2.42 billion Kidex for failing to fulfill several conditions before a Feb 14 deadline.

Today, he said the federal government had asked for a meeting with the state government to discuss the state's public works project following the decision to cancel the 14.9km highway project, which would link Puchong and Damansara.

Mohamed Azmin said the meeting between the two parties were likely to be held next week.