SHAH ALAM, 9 August -  The Selangor State Government welcomes the statement made by the Minister of Energy, Green Technology and Water, Peter Chin (New Straits Times, 4th August 2009) that it is important to conclude restructuring of the water services industry as soon as possible.

The State fully agrees that the matter should be resolved quickly in the interest of the public and has indeed been vigorously pursuing negotiations throughout the months of June to present.

However, the State is not willing to offer a higher price to the outstanding water services concessionaires for their water services assets as this has immediate implications of increased water tariffs.

First, the current offers of June 2009 are already at significantly higher prices than those initially offered in February 2009. Second, the concessionaires are being well compensated based on fair and reasonable values taking into account all injected capital and risks undertaken. Third, higher prices paid to concessionaires would ultimately be borne by the rakyat, either through tax-payers’ money or higher tariff rates in the future.

Buying back the water services assets of the concessionaires at inflated prices is unfair to the rakyat.

The State is therefore concerned about the possibility that the Federal Government may be willing to offer higher prices for these assets to the concessionaires and hopes that this will not materialise as the rakyat would be hit twice, first through taxpayers’ money, and second through increase in water tariffs. - MOHD SAHRULNIZAM MOHD ZAIN