PUTRAJAYA: The restructuring of the water services industry in Kelantan was finalised yesterday.
The move will benefit some 1.6 million consumers and ensure a sustainable water industry in the state.
Three agreements on the matter were signed here yesterday witnessed by Prime Minister Datuk Seri Najib Tun Razak and Kelantan Menteri Besar Datuk Ahmad Yakob.
They were a master agreement between the Federal Government, the PAS-led Kelantan government, Air Kelantan Sdn Bhd (AKSB), Pengurusan Aset Air Berhad (PAAB); an agreement on facilities between PAAB and AKSB and a lease agreement between PAAB and AKSB.
The agreements were inked by Energy, Green Technology and Water Ministry secretary-general Datuk Seri Dr Zaini Ujang; Kelantan Deputy State Secretary (Development) Datuk Dr Tengku Mohamed Faziharudean Tengku Feissal; AKSB chairman Datuk Hanifa Ahmad and PAAB chief corporate officer Abdul Hadi Ali.
Also present were Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili and International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
Negotiations to improve the state’s water services industry between the Federal Government and the Kelantan government had started in 2008 but hit many snags before the successful outcome yesterday.
At a press conference afterwards, Ongkili said the move was an initiative by the Federal Government to assist AKSB in terms of finance to create a sustainable water services industry in Kelantan.
With the restructuring, he said matters on management of water supply and the water industry were under the purview of the state government while the Federal Government would act a a regulator as provided for under the Water Services Industry Act 2006 (Akta 655).
He said AKSB will focus on efficiency and effectiveness of operations and maintenance to ensure consumers received water supply that was sufficient, of good quality and with minimum disruptions.
“PAAB will take over loans related to water services taken by the Kelantan government amounting to RM604 million, including RM513 million loaned by the Federal Government. PAAB will provide capital to AKSB to upgrade as well as renew its water assets and build new (water) infrastructure,” he said. — Bernama