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RM125m for Syabas to replace
old water pipes
The Star 4/11/2006
CYBERJAYA: Water concessionaire Syabas is still entitled to RM125mil
compensation from the Federal Government despite having been allowed to
raise its rates earlier this month.
Water, Energy and Communications Minister Datuk Seri Dr Lim Keng Yaik said
this was because under the concessionaire agreement, the company was
supposed to have raised its water tariffs on Jan 1 this year.
“However, because its application to increase water tariffs had to be
subjected to an audit by the Auditor-General on its performance, it had
taken around 10 months for it to be approved.
“So under the agreement, they are entitled to claim for compensation,” Dr
Lim said after his ministry’s joint Hari Raya and Deepavali celebrations
here yesterday.
But, Dr Lim insisted, that the company would not be seeing the compensation
as cash.
“That’s because the Government has decided that this should be paid out as
capitation grant, which must be used by Syabas to replace the old water
pipes in Selangor and Federal Territory.
“Replacing these water pipes will help reduce the huge volume, around 40%,
of non-revenue water being lost annually and also ensure cleaner and better
water supply to consumers. The current state of dirty water is due to the
fact that many pipes have not been replaced for years,” he added.
The increase in water tariffs came into effect on Wednesday and it has been
heavily criticised by consumers.
Under the new tariff, there was no increase for the first 20 cubic metres
used, 13% for every cubic metre used for the next 15 cubic metres and 17.6%
for every cubic metre after 35 cubic metres.
Dr Lim said with the setting up of SPAM (National Water Services
Commission), which should be up and running by Jan 1, state governments
could no longer raise water rates without referring to the Federal
Government.
“Until such time, state governments can still increase the rates,” he said.
Earlier, in his speech, Dr Lim said 12 out of the ministry’s 880 projects
worth RM931mil under the Ninth Malaysia Plan were now ready for tender. |
