Sungai Sireh Water Treatment Plant

distressed

On March 7, on the eve of 12th general elections, 2008 Malaysian utility Puncak Niaga Holdings Bhd signed a concession agreement to operate the Sungai Sireh water treatment plant in the state of Selangor. The contract was signed between the federal government, the state administration and Puncak Niaga. The Puncak Niaga Holdings Berhad (PNHB) Group was an integrated water services company in Malaysia operating a total of 29 water treatment plants in Malaysia. Under the contract Puncak Niaga would operate, manage and maintain the raw water intake and treatment plant situated on a piece of land beside a canal near Sungai Sireh, Tanjung Karang in Kuala Selangor. The company would operate the assets for a concession period of 27 years, starting from April 1, 2007 and ending April 30, 2034. In a election result, the opposition took control of the state from the ruling coalition of Prime Minister Abdullah Ahmad Badawi. On March 17, Selangor's newly appointed chief minister Khalid Ibrahim announced that the new state government of Selangor would review the Sungai Sireh Water Treatment contract, as it seemed lopsided and would profit Puncak more than it would the state government or the people of Selangor, adding that all water agreements would also be reviewed as part of the state's plan to make the first 20 cubic metres of water free to all Selangor households from April 2008. On March 26, New Energy, Water and Communications Minister Datuk Shaziman Abu Mansor said the federal government considers this contract valid as long as the National Water Services Commission (Span) does not raise objections to it or nullify it. In response to this announcement, Khalid said that the contract could stand, but the state government would still declassify and review the contract to make sure that this deal was good and fair for the consumers and the state government.