Government directive freezes Syabas' RM26b pipe project

Tuesday, 21 April 2009

Government directive freezes Syabas' RM26b pipe project

Government directive freezes Syabas' RM26b pipe project

KUALA LUMPUR, April 21 — Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) today announced the freezing of a RM26-billion project to replace old mains and communication pipes in view of the restructure of the water management sector in Selangor and the federal territories of Kuala Lumpur and Putrajaya.

Syabas executive chairman Tan Sri Rozali Ismail said the freeze was imposed as a result of the government directive and Syabas would inform consumers of the project details through a newspaper advertisement as well as posters and leaflets.

“Syabas has been directed by the government to postpone the works, including repair works planned under the third programme which was to begin early next year,” he said in a statement.

He acknowledged that the postponement would have a direct impact on consumers because many service activities would be disrupted, particularly those involving important works such as replacement of mains and pipes.

However, he said, Syabas would continue with other works not covered by the freeze in the hope that they would help lessen the difficulties faced by consumers.

Rozali said no time frame was set for the freeze, and advised consumers who faced problems related to water supply to contact Puspel at the toll-free line 1-800-88-5252.

Four concession companies — Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Konsortium Abbas Sdn Bhd, Puncak Niaga Sdn Bhd and Syarikat Pengeluar Air Selangor Holdings Bhd (Splash) — undertake treatment and supply of water to consumers in Selangor and the federal territories of Kuala Lumpur and Putrajaya.

According to an agreement, the concessionaires are scheduled to raise the water tariff by 37 per cent from April 1 next year.

This resulted in a dispute with the Selangor state government which offered to buy the four concessionaires at a cost of RM5.7 billion and undertake the treatment and supply of water itself but the concessionaires did not agree to the proposal. — Bernama