SHAH ALAM, 3 Mar: The Memorandum of Understanding (MoU) for the restructuring of the water industry in Selangor between the Federal Government and the State Government would not have been signed if it did not protect the interests of the people.

The Chief Executive Officer of Menteri Besar Incorporated (MBI), Faekah Husin, said that although the MoU signing ceremony was allegedly done suddenly, but the terms and conditions contained in the agreement has been scrutinised.

She said that the state government has always been consistent and has not strayed from all the terms and conditions until the MoU was signed on 26 February.

“The Selangor Government is confident that the MoU will accelerate the restructuring of the water industry, in line with the Water Services Industry Act 2006 (Act 655) to ensure world class water services at reasonable tariffs, the reduction of non-revenue water (NRW), in addition to continuing with the 20 cubic meters of free water programme.

“It is no secret that the state government will only allow the Langat 2 construction project with certain terms and conditions if it is to be part of the implementation of the water industry restructuring,” she said in a statement.

Faekah said that the State Government has always adopted an open and transparent attitude in this water acquisition process, especially regarding the RM9.65 billion offer to buy the equities of the four concessionaires.

She said that the concessionaires will also be given the opportunity to refer the matter to the level of International Arbitration if they feel entitled to a higher price from the offer.

In addition, she said, the clause in the MoU also guarantees the rights of the parties involved to take any action, as enshrines in the Federal Constitution and law if they feel that their interests have been threatened.

“Concerns by some about the possibility that the Selangor Government will have to pay higher compensation to concessionaires if brought to International Arbitration is unjustified and inaccurate.

“This is because the State Government has given due consideration towards all scenarios with the related risks without compromising any possibilities before signing the MoU.

“The Selangor Government is also confident that the assessment of equity prices that gives a 12 percent annual return to shareholders will not be undersold by International Arbitration.

“Until now, no parties have disputed the valuation price offered by the State Government,” she said.