Wednesday, April 7, 2010

Minister: Gamuda's RM10.75b offer against Water Services Industry Act

KUALA LUMPUR: The Minister of Water, Green TECHNOLOGY [] and Energy said on Wednesday, April 7, the offer by GAMUDA BHD []'s associate to buy out water assets in Selangor for RM10.75 billion was against the spirit of the Water Services Industry Act 2006.

Bernama quoted Datuk Seri Peter Chin Fah Kui as saying water companies should not own assets but just focus on operations and maintenance. The Act was aimed at promoting an asset-light environment for water companies.

Chin was asked to comment on Gamuda's 40% owned Syarikat Pengeluar Air Sungai Selangor Sdn Bhd's (Splash) offer, to buy out the water assets in Selangor.

This offer is about 16% higher than the RM9.22 billion offered by the Selangor state government last year.
"They (Splash) want to take over the assets of other water companies in Selangor and operate a concession, which is basically not promoted by the Act," Chin said.

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