Published: Monday February 4, 2013 MYT 9:49:00 AM
Updated: Monday February 4, 2013 MYT 9:53:10 AM
Selangor wants details of how Syabas will spend RM120mil allocation
By TEH ENG HOCK
SHAH ALAM: The Selangor state government will ask water concessionaire Syarikat Bekalan Air Selangor (Syabas) to submit details of how it plans to spend the RM120mil allocation by the federal government.
Mentri Besar Tan Sri Khalid Ibrahim said the federal government should support the state's move to restructure the water services industry instead of pumping more money into Syabas, which he alleged had failed to manage water supply distribution efficiently.
On Saturday, Prime Minister Datuk Seri Najib Tun Razak announced an additional allocation of RM120mil to the RM606mil already given to Syabas to help ease Selangor's water woes.
Khalid said although Syabas had received soft loans from the federal government in the past, it had failed to reduce non-revenue water (NRW) to the stipulated rate of 19.98% by 2011.
"After spending RM1.17bil, which is more than agreed in the concession agreement, the NRW rate is at 33%," he said in a statement.
He said the failure to manage NRW caused Selangor, Kuala Lumpur and Putrajaya to lose 663 million litres per day, which was enough to cope with water demand until 2017.
"If Najib is insistent on proceeding with the RM120mil loan, the state government will ask Syabas to provide details of expenditure," he said.