Thursday, 12 April 2012


SHAH ALAM: Selangor will terminate Syarikat Bekalan Air Selangor’s (Syabas) contract if the company cannot meet water supply demands from consumers.

“The state has the right to terminate the concession agreement and take over Syabas if the company fails to fulfil its responsibilities,” warned Menteri Besar Tan Sri Khalid Ibrahim on Wednesday.

He said 79 development projects in Selangor have stalled due to Syabas’ inability to provide water supply.

Khalid said the state was “very concerned” and had sent a warning letter to Syabas on March 29.

“We want to remind Syabas that it must fulfil its duty to provide treated water to consumers at all times (under the concession agreement).”

He added that the state is meeting with Syabas representatives today (Friday, April 6) to resolve the issue.

The Selangor Real Estate and Housing Developers’ Association of Malaysia (Rehda) had informed Selangor Times that 20 of its members had been denied water connection since January.

Its chief, Ngiam Siew Siong, said the developers have paid Syabas their water contribution charge but still could not receive water.

As a result, projects have been delayed and purchasers victimised.

“The buyers want to move in but can’t,” he said.

The association is concerned that the problem would lead to a rise in abandoned projects.

REHDA is seeking a roundtable meeting with the state and Syabas to resolve the matter.

Apart from developers, two foreign-owned factories in Klang have also been denied water supply at their premises.

Syabas had informed the Singaporean and Taiwanese factories that it could not approve their application due to water shortage, according to a Selangor foreign direct investment report issued last year.

Meanwhile, Syabas corporate affairs executive director Abdul Halem Mat Som also confirmed the company had placed a moratorium on water connection requests from new factories.

“We couldn’t approve the applications due to water supply shortage,” said Abdul Halem.

He claimed that water treatment plants in Selangor were already operating at maximum capacity.

Syabas executive chairperson Tan Sri Rozali Ismail also reportedly said the water distributor had frozen planning approval for developments in Klang Valley since January.

“We can’t afford to overload the water treatment plants,” he told the press recently.

He attributed the treated water shortage to the delay in the construction of the Langat 2 water treatment plant which processes raw water to be channelled to the state from Pahang.

“If the Langat 2 water treatment plant is approved, Syabas can review the applications for these projects,” Rozali had reportedly said.

Selangor and Putrajaya are deadlock over the treatment plant which requires state land approval.

The state is unwilling to approve the construction until Putrajaya allows the state to restructure and streamline Selangor’s water services industry.

From : Selangor Times

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