ANALYSTS await the finalisation of water deal between Selangor, the Federal Government and the respective water concessionaires, and welcome the additional RM3 billion allocation.
AmResearch said the additional RM3 billion allocated by the Federal Government is based on the premise that Langat 2 water treatment plant must go on.
“As for Splash (Syarikat Pengeluar Air Selangor Sdn Bhd), we remain optimistic that a fair offer could be reached for a complete closure to the water saga,” it said in its research note to investors maintaining a “neutral” recommendation on the sector.
Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili said in a news report that an additional RM3 billion has been set aside for the water restructuring deal.
AmResearch said while there was no further explanation, it believes that the additional RM3 billion pertains to the allocation by state-owned Pengurusan Aset Air Bhd for the takeover.
Recall that under the master agreement, PAAB will allocate RM1.68 billion for the takeover of the concessionaires.
It will also take over the liabilities and federal loans of the concessionaires worth RM7.45 billion.
Ongkili said the master agreement cannot be disclosed at the moment as it contains elements that are yet to be finalised.
These include price negotiations with the concessionaires.
“We understand that the new Menteri Besar Mohamed Azmin Ali has yet to approach the water concessionaires to finalise the sale agreement.”
Recall that Syabas, Puncak Niaga Sdn Bhd and Konsortium Abass Sdn Bhd have agreed in principle to the offers since last December.
As for Splash (the only water concessionaire left to accept the offer), Ongkili said he was confident that Azmin could settle the issue.
The federal and state governments have inked the master agreement in September to restructure the water industry in Selangor.
Under the agreement, a new entity — Pengurusan Air Selangor Sdn Bhd — will take over the concessionaires that have agreed to the deal.