Pengurusan Aset Air Berhad Signs Water Restructuring Deal With Perlis

PUTRAJAYA, Monday: Pengurusan Aset Air Berhad (PAAB), a government-owned company under the Minister of Finance Inc., signs water restructuring deal with the state of Perlis today. The restructuring deal involves PAAB acquiring water assets from the state of Perlis as part of the National Water Services Industry Restructuring Initiative. With Perlis signing the deal, it is the fourth state to embark on the new licensing regime after PAAB’s acquisition from the state of Melaka, Negeri Sembilan and Johor.

The signing ceremony was witnessed by Deputy Prime Minister Tan Sri Muhyiddin Mohd Yassin, Finance Minister II Dato’ Seri Ahmad Husni Mohamad Hanadzlah, Minister of Energy, Green Technology and Water Dato’ Seri Peter Chin Fah Kui, Perlis Menteri Besar Dato’ Seri Dr. Md Isa Sabu and Dato’ Seri Diraja Tajol Rosli Ghazali, Chairman of PAAB. Also present were Tan Sri Dato’ Dr. Wan Aziz Wan Abdullah, Chief Secretary for Treasury, Dato’ Azizan Hamid, Perlis State Secretary and Dato’ Ahmad Faizal Abdul Rahman, Chief Executive Officer of PAAB who penned the agreements for Federal Government, State of Perlis and PAAB respectively.

In his speech, Tan Sri Muhyiddin commended the state of Perlis for realising the National Water Services Industry Restructuring Initiative for the benefit of the people in Perlis. Perlis’ migration to the new licensing regime could not be at a better time as PAAB has allocated a CAPEX budget amounting to RM24 million in 2010 to meet the development of water assets in Perlis.

In line with our focus to provide the highest level of quality and efficient services, PAAB will work hand in hand with water operators from the states to ensure that their water needs are being addressed. It is our fervent hope, other states that have yet to migrate to the new regime will put priority in finalising their negotiation process.’ he added.

Under the agreements signed, PAAB will be taking over a total of RM203 million worth of water-related assets including three water treatment plants, 12 reservoirs, 10 water tanks, a booster station and piping network in Perlis belonging to the state Government. As the consideration, RM85 million of the Federal Loan has been novated to PAAB, which reflects the completed works.

The water assets in Perlis are acquired at one (1) time book value, by equating to the value of liabilities. It is the same basis PAAB applied in taking over the other states’ assets previously. Prior to the acquisition, PAAB had appointed professional auditors to verify the value of the assets.

With this acquisition, PAAB will have RM6.3 billion worth of water assets in its books. PAAB is targeting to conclude acquisition deals with few other states by end of 2010, barring any unforeseen circumstances. Together with the relevant ministries, PAAB is also finalising negotiations with the state of Selangor and is considering all possible avenues to resolve any outstanding issues. These efforts will bring the Government closer to realising its aspiration to restructure the country’s water industry to achieve the objectives under Water Services Industry Act 2006 (WSIA).

For further information, please contact:

Norlida Mohd Ariff
Manager, Corporate Communications Department
Pengurusan Aset Air Berhad
Tel. No. : 03-2614 5555
Email : norlida@paab.my
Website : www.paab.my

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