Tuesday, September 25, 2007

post by Susanne Chi

17-08-2007: Puncak Niaga signs deal on water plant

KUALA LUMPUR: Puncak Niaga Holdings Bhd has entered into a 28-year concession agreement with the Selangor state government for the operation and maintenance of the Sungai Lolo water treatment plant in Hulu Langat.

In a statement yesterday, Puncak Niaga said its 82.5%-owned subsidiary Puncak Niaga (M) Sdn Bhd (PNSB) has been appointed as the operator to manage, maintain and refurbish raw water intake, and the extended treatment plant.

It said a separate novation agreement was also signed between the Selangor government, PNSB and Puncak Niaga’s 70%-owned subsidiary Syarikat Bekalan Air Selangor (Syabas) through which Syabas assumes all of the state’s rights under the operation and maintenance agreement.

Puncak Niaga said under the concession period from Dec 1, 2006 until Dec 31, 2034, PNSB had been granted the right to abstract raw water from Sungai Lolo or other sources as agreed by the director of Water Regulatory Department.

It would also have access and exclusive use of the plant area as well as the right to sell in bulk treated water produced from the operation of the facility to the state government.

Under the novation agreement, Syabas will assume the state government’s obligations with regards to the purchase of treated water from PNSB, payment for the bulk supply and all of the other obligations. Puncak Niaga said the execution of the agreements was not expected to have any effect on its earnings for the current financial year.

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