PUTRAJAYA, April 26 (Bernama) –The federal government and the Pahang government today signed a Supplementary Agreement, which is supplemental to the main agreement on the Restructuring of the Pahang Water Service Industry.
The signing of the supplementary agreement, which involved the federal government, Pahang government, Pengurusan Aset Air Bhd (PAAB) and Pengurusan Air Pahang Bhd (PAIP), was held here and witnessed by Pahang Menteri Besar Datuk Seri Wan Rosdy Wan Ismail and Deputy Minister of Environment and Water Datuk Mansor. Othman.
It was signed by the Environment and Water Ministry secretary-general Datuk Seri Ir Dr Zaini Ujang, Pahang State Secretary Datuk Seri Dr Sallehuddin Ishak, PAAB Chief Executive Officer Abdul Hadi Ali and PAIP chief executive officer Saiful Zaini Mohd Bahari.
Wan Rosdy and Mansor, in a joint statement issued in conjunction with the ceremony, said the signing of the supplementary agreement would enable the main agreement that signed in Kuantan, Pahang, on Dec 23, 2020, to be enforced and the restructuring of the Pahang water services industry to be enforced.
Among the essence of the supplementary agreement is on the granting of a moratorium to PAIP starting from the increase in water tariff and for a 45-year loan period given to PAAB, including a five-year loan deferral period effective from the implementation date on the increase in water tariff in Pahang.
“The restructuring of the Pahang water service industry does not have direct financial implications for the Federal government and the agreement to write off the rural water supply loan to Pahang amounting to RM1 billion is still binding,” it said.
It also stated that PAIP would also get access to PAAB loan facilities for the development of water assets in Pahang based on a build and lease approach at a competitive rate compared to commercial financing.
“This enables PAIP to start improving the efficiency and quality of water services to consumers with the construction of new water treatment plants, upgrading of existing water treatment plants as well as the replacement of pipes and distribution systems,” read the statement.
The joint statement also stated that the agreement between the federal and state governments on the restructuring of the water service industry in Pahang would have a high positive impact on economic development and also the well -being of the people in Pahang.
“The commitment of all parties in ensuring the provision of high quality water supply services is in line with the Keluarga Malaysia (Malaysian Family) approach of togetherness and inclusiveness,” it stated.
On Dec 23, 2020, Environment and Water Minister Datuk Seri Tuan Ibrahim Tuan Man was reported as saying that the federal government had agreed to write off loans to the Pahang government, amounting to RM2.1 billion, through the Pahang Water Service Industry Restructuring Agreement.
According to Tuan Ibrahim, it involved a rural water supply loan amounting to RM1 billion, while the balance is the novation of the state government’s loan to PAAB to develop water assets in Pahang through a build and lease approach to PAIP.
Source: BERNAMA News Agency