Putrajaya says keen on Selangor water talks

May 26, 2011
Datuk Seri Peter Chin KUALA LUMPUR, May 26 Putrajaya today said it was eager to take part in Selangors proposed discussions over the restructuring of water assets in the state.Minister of Energy, Green Technology and Water Datuk Seri Peter Chin said his ministry will also consider the planned takeover of the debts held by water companies in the state.I wish to clarify that the proposed takeover is a mitigation measure to stabilise the water supply service in Selangor and prevent this crisis from affecting national financial market confidence, Chin was quoted by Bernama Online today.Last Wednesday, Selangor said it was re-initiating talks with Putrajaya in the water assets restructuring stalemate.Both the state and federal governments have been locked in a struggle over water assets in Selangor since Pakatan Rakyat (PR) took control of the state in 2008, with neither side wanting to give the other control over the critical industry.Two days after the announcement, Business Times reported that Putrajaya was slated to pay RM6.5 billion to bond holders for the water debts in Selangor.The ultimate aim is for the government to own the assets and debts of the water companies in Selangor in an effort to consolidate the water industry, the Business Times quoted an industry source as saying.The major owners of water assets in the central state of Selangor include subsidiaries controlled by Puncak Niaga and Gamuda .This situation would enable the federal government to focus on restructuring the industry and continue negotiations with the state government without having to worry about bond-related issues, Chin said.Chin also said Putrajaya believed its takeover of Selangors water assets will stabilise the water supply industry in the state.

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