Development order for Langat 2 plant in limbo

12:56PM Mar 17, 2014  Aidila Razak (MKini)

Construction of the Langat 2 water treatment plant is in limbo, with the Selangor government insisting that it will not sign a development order, until the federal government makes sure that the takeover of the state’s water service industry goes through.

Menteri Besar Abdul Khalid Ibrahim said he had written to Water, Energy and Green Technology Minister Maximus Ongkili last week and will seek a meeting this week.

Ongkili (right) had reportedly said that the federal government will not yet invoke Section 114 of the Water Services Industry Act to revoke the licences of three water concessionaires who had rejected the Selangor government’s RM9.65billion offer.

“Whatever it is, I will meet the minister on the Section 114 process (as) I had detailed it in my letter to him last Monday,” Khalid said today.

“This way, the three projects will be done at the same time – the restructuring and takeover of the water concessionaires, the state’s approval for Langat 2 … and negotiations with PAAB on the federal government’s RM2 billion allocation to Selangor (to facilitate the takeover).”

PAAB refers to the federal agency, Pengurusan Aset Air Bhd.