PETALING JAYA: The federal government today signed a memorandum of understanding with the Selangor government to restructure the water industry in the state.
The signing of the MoU, at the federal administrative capital witnessed by the Prime Minister Najib Tun Razak and Selangor Menteri Besar Abdul Khalid Ibrahim, would also paves the way for the construction the much-needed Langat 2 water treatment plant.
The federal government was represented by Energy, Water and Green Technology Minister Dr Maximus Ongkili while Khalid represented the Selangor state government. Also present was Deputy Prime Minister Tan Sri Muhyiddin Yassin .
Although details of the MoU remain sketchy, the water restructuring exercise will give the green light for the state administration to take over the management of water companies, which will receive a whopping RM9.65 billion in compensation.
The federal government is expected to pump-in RM2 billion to help the state manage the companies.
On its part, Selangor will allow the federal government to proceed with construction of the Langat 2 water treatment plant.
The signing of the MoU brings to a close the near five-year tussle between the two governments over the matter.
