The three solid waste management concessionaires will be paid RM800mil a year to upgrade their services in Peninsula Malaysia, said Housing and Local Government Minister Datuk Chor Chee Heung.
He said the Government would pay the concessionaires - SWM Environment, Alam Flora Sdn Bhd and Environment Idaman Sdn Bhd - an average of RM8 per household for each month under a 22-year contract, with rates open for review every seven years.
“In order not to burden the public, they just pay the amount they have been paying for assessment fees, of which a certain percentage is for such services. Any extra charges will be borne by the Government.
“We will be bear RM500mil a year while the rest will be collected from assessment fees,” he said after launching the Waste Management Association’s pavilion at the Second International Greentech & Eco Products Exhibition & Conference Malaysia here Thursday.
He said in the past, the rate would vary between RM2.30 and RM12 but this had been standardised to make it fair to concessionaires.
Under the Solid Waste Management and Public Cleansing Act, which came into effect on Sept 1, solid waste management and public cleansing would be privatised and the concessionaires involved subjected to a Key Performance Indicator system to ensure that they were up to the required standards.
Three states have been exempted from the Act - Selangor, Penang and Perak.
