Perak is a now a “debt-free” state after transferring RM999.2mil worth of water assets to the Federal Government’s Pengurusan Aset Air Bhd (PAAB).
Mentri Besar Datuk Seri Dr Zambry Abdul Kadir said that with the transfer, the state’s water liability, which was valued at RM999mil has now been cancelled.
“That means the state has paid all its debts to the Federal Government except for RM72mil which is in the form of public housing projects and a loan for the construction of the state secretariat building.
“If we use the same standards as Penang, then we have no debt at all,” he told newsmen after witnessing the signing ceremony of the transfer deal here yesterday.
Deputy Prime Minister Tan Sri Muhyiddin Yassin also witnessed the signing of the agreement involving the Federal Government, Perak Government, PAAB and Lembaga Air Perak (LAP).
Treasurer-General Tan Sri Dr Wan Abdul Aziz Wan Abdullah, Perak state secretary Datuk Abdul Puhat Mat Nayan, PAAB CEO Datuk Ahmad Faizal Abdul Rahman and LAP general manager Datuk Mohd Yusof Mohd Isa signed the agreement.
Perak was the sixth state to sign the water restructuring deal after Malacca, Negri Sembilan, Johor, Perlis and Penang.
Under the agreement, PAAB will take over the state’s water assets and liability and subsequently lease the water assets back to LAP at an agreed rate.
Dr Zambry said the state’s total water assets was worth RM2.38bil, including about RM640mil in cash.
“The agreement is for a period of 45 years and when it expires, all the assets will be returned to the state,” he said.
Dr Zambry gave an assurance that water tariff in Perak would remain acceptable.
“We have agreed not to use the agreement to increase the tariff,” he said.
However, he said there was no guarantee that there would not be any hike in the future.
The transfer of the water assets of all states in the peninsula is in line with the mandate given to the PAAB to be the nation’s water asset owner and manager under the national Water Service Industry Restructuring Initiative.
With the latest acquisition. PAAB would have RM9.24bil worth of water assets in its books. It is targeting to conclude the restructuring deals with the remaining states by the end of next year.
