Pulau Pinang Becomes The Fifth State To Sign Water Restructuring Deal With Pengurusan Aset Air Berhad

PUTRAJAYA, Thursday: Pulau Pinang becomes the fifth state to sign a water restructuring deal with Pengurusan Aset Air Berhad (PAAB), a government-owned company under the Minister of Finance Incorporated today. Pulau Pinang now joins Melaka, Negeri Sembilan, Johor and Perlis in embarking the new licensing regime as part of the National Water Services Industry Restructuring Initiative.

The signing ceremony was witnessed by Prime Minister Dato’ Sri Mohd Najib bin Tun Abdul Razak, Finance Minister II Dato’ Seri Ahmad Husni Mohamad Hanadzlah, Minister of Energy, Green Technology and Water Dato’ Seri Peter Chin Fah Kui, Chief Minister of Pulau Pinang Tuan Lim Guan Eng and Dato’ Seri Diraja Tajol Rosli Ghazali, Chairman of PAAB. Also present were Tan Sri Dr. Wan Aziz Wan Abdullah, Chief Secretary for Treasury, Dato’ Farizan Darus, Pulau Pinang State Secretary, Dato’ Ahmad Faizal Abdul Rahman, Chief Executive Officer of PAAB and Ir. Jaseni Maidinsa, Chief Executive Officer of Perbadanan Bekalan Air Pulau Pinang (PBAPP) who penned the agreements for Federal Government, State of Pulau Pinang, PAAB and PBAPP respectively.

In his speech, Dato’ Sri Najib said that Pulau Pinang’s migration to the new licensing regime will trigger vast and dynamic progress to the state, particularly in the water industry. The water restructuring deal with Pulau Pinang will also be the first of its kind, as the water operator is granted both service and facility licenses. “This positive development in the restructuring initiative proves that the Federal Government will take into account all aspects of water supply services in the state such as water demand, operations and financial stability to create a holistic and efficient water industry.”

“Today’s signing is a lucid example of a successful co-operation and understanding reached between the Federal Government and State Government in realising the restructuring of the water services industry. It showed a strong and blooming teamwork between the parties for the benefit of the people in Pulau Pinang. 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, the State of Pulau Pinang will be alienating a total of RM655.2 million worth of water-related assets to PAAB. As a consideration, PAAB will take over the State’s water liability from the Federal Government of the same amount and subsequently lease the water assets to PBAPP at an agreed rate.

The ceremony also witnessed the handing over of Individual License to PBAPP and Letter of Acceptance for Mengkuang Dam Development Project from Dato’ Seri Peter Chin Fah Kui to Tuan Lim Guan Eng and Jiang XiaoHua from China International Water and Electrical Corp (M) Sdn Bhd respectively.

With this acquisition, PAAB will have nearly RM7.7 billion worth of water assets in its books. PAAB is targeting to conclude acquisition deals with few other states by end of 2011, barring any unforeseen circumstances.

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