Water Concession in Selangor

Puncak Niaga is believed to be seeking an extension to its water concession in Selangor by another 20 years in return for not raising its tariffs that are due in Jan-09. Sources said that the proposal was submitted to the federal government a few weeks after it sent a notice to SPAN seeking a tariff hike of 37%.

Syabas' 30-year concession to supply water to Selangor, Kuala Lumpur and Putrajaya would end in 2034. The 37% water tariff hike due in Jan-09 is its highest tariff increase throughout its concession period. An approval for an extension of Syabas' concession would mean that tariff increases would be spread-out with lower quantums and would ultimately benefit consumers.