ALOR SETAR (March 4): The Federal government has agreed to write off the Kedah rural water supply debt, amounting to RM699 million, after the signing of the State water services industry restructuring agreement, today.
Minister of Environment and Water Datuk Seri Tuan Ibrahim Tuan Man said the move would reduce the State’s water supply debt from RM1.82 billion to RM1.12 billion, and the balance would be taken over by Pengurusan Aset Air Berhad (PAAB).
He said the agreement would enable critical rural water supply infrastructure projects such as upgrading the Lubuk Buntar Lama, Jenun Baru, Bukit Selambau and Sungai Limau water treatment plants (LRAs) to be implemented through grant financing to meet consumer demand.
“The balance of the loan will be transferred to PAAB, and the payments will be restructured for a period of 45 years through a lease to be charged to Syarikat Air Darul Aman Sdn Bhd (SADA).
“SADA will be given a moratorium on the lease payment for the first five years to help it build a strong financial base before starting repayment to PAAB,” he said in his speech at the agreement signing ceremony here today.