SHAH ALAM, Nov 20 — Talks on restructuring the Selangor water industry cannot be finalised due to the different stance between the federal and state government in determining the cost of acquiring the four concessionaires.

Local Government, Study and Research Committee Chairman Datuk Teng Chang Kim said the state government felt the takeover based on ‘willing buyer, willing seller’ concept required by federal government is against the Water Services Industry Act 2006.

“There is no condition in the Water Services Industry Act 2006 that requires talks between the federal government, state government and the concessionaires be based on ‘willing buyer, willing seller’ concept,” he said replying to a question from Datuk Amiruddin Setro (BN-Jeram ) in the state assembly today.

Teng said if the concessionaires were dissatisfied with the state government offer, they could take the dispute to the Arbitration Tribunal based in London.

Taking the dispute to the Arbitration Tribunal would be fair as it would be impartial in determining the state government’s offer to the concessionaires.

The state government had submitted four bids to acquire the four water concessionaires with the latest involving RM9.65 billion on February 20.

The concessionaires are Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash), Puncak Niaga (M) Sdn Bhd, Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) and Korsortium Abass Sdn Bhd. — Bernama