PUTRAJAYA: The federal government and Kelantan state government today signed a master agreement to finalise the restructuring of the state's water supply industry.
Two other related agreements; on infrastructure between Pengurusan Aset Air Bhd (PAAB) and Air Kelantan Sdn Bhd (AKSB), and leasehold between PAAB and AKSB, were also signed.
Prime Minister Datuk Seri Najib Razak witnessed the signing ceremonies.
Also present were Kelantan Menteri Besar Datuk Ahmad Yakob, Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Johnity Ongkili and International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
With the restructuring, all matters related to water supply management and water industry would be placed fully under the purview of the Kelantan state government.
The federal government would act as the regulator as stipulated under the Water Service Industry Act 2006.
In a joint statement, Ongkili and Ahmad said both parties expressed hope that all quarters involved would work towards the success of the restructuring exercise for the sake of the people in Kelantan.
Under the restructuring exercise, AKSB would focus on the aspects of operation and maintain the state's water supply system to become more efficient and effective.
The negotiation to restructure Kelantan's water industry between the Kelantan state government and the federal government has started since 2008.