Selangor Willing to Reduce Water Tariff

Mar 3rd, 2009 | By nizam | Category: News

SHAH ALAM, Mar 3 – The state government is willing to reduce the water tariff by 10 per cent if it succeeds in managing the water industry in the state.

Selangor Dato’ Menteri Besar, Tan Sri Abdul Khalid Ibrahim, said this could be implemented if the federal government implemented the state government’s methods.

“Our property value is RM9 billion and the value we wanted to buy from the (four) concession companies was RM5 billion, so we can reduce (the water tariff) because (then) we will have extra money which we can use to repair pipes and the like, which will reduce our costs.

“Therefore the 10 per cent is a target which we can reasonably expect,” he said when met after the Selangor Water Industry Restructuring Briefing Session at the Dewan Auditorium Jubli Perak here this afternoon.

The briefing sponsored by the Dato’ Menteri Besar’s Office was attended by the Yang Dipertua and local authorities (PBT).

He was asked to comment on a proposal by Water Assessment Panel Member, Charles Santiago, who is also Klang Member of Parliament, in the briefing.

Abdul Khalid was also asked on the proposal by one of the participants in the briefing who had suggested that water users not pay their bills as a way of boycotting the National Water Services Commission (Span) in bypassing the state government by holding negotiations with four concession companies,  Konsortium ABASS Sdn Bhd (Abass), Puncak Niaga (M) Sdn Bhd, Syarikat Pengeluaran Air Selangor Holdings Berhad (Splash) and Syarikat Bekalan Air Selangor (Syabas).

“We can’t do that… we must abide by the law. If no one pays (their bills) it’ll cause even more difficulties, so we have to pay (bills), but we suggest that the current amount be reduced, that is what’s important,” he said.

 He said, this was because if the state government managed to take over from the four companies, users would still have to pay bills but at a lower rate.

Earlier, Abdul Khalid in his speech said the state government hoped to be able to manage its water industry to ensure that all profits gained could be redistributed to the rakyat.

He said, the previous water privatisation policy had not been successful due to inefficient management .

“If compared, Syabas’ prices are far higher than Perbadanan Bekalan Air (PBA) Pulau Pinang. So what is the use of privatisation,” he said.

He added, the Pakatan Rakyat state government would never question the political leanings of water users in the state in giving them free 20 cubic metres as everyone had a right to water. – NOOR ALLIA KASSIM



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