IPOH,  — The water tariff setting will continue to be under the jurisdiction of the Perak government despite the proposed migration of assets from Perak Water Board (LAP) to Water Asset Management Berhad (Wamco).

Menteri Besar Datuk Seri Dr Zambry Abdul Kadir said Wamco had given an undertaking that it would not interfere in water tariff setting despite the signing of the water asset migration agreement.

“This is among key terms being finalised by the state government and Wamco before the agreement is concluded by early next year.

“Negotiations are in final stages and we have concluded essential terms. In principle, the state government is satisfied with the terms of the agreement and the explanation given by Wamco,” he told reporters after chairing the state executive councillor meeting here Wednesday.

Zambry said the state government was briefed on the terms and conditions of the agreement by Wamco and it would ensure that it had the best deal.

Zambry said under the agreement, the state government would benefit from land premium revenue and annual assessment rates unlike before when no income was derived from land provided to LAP.

Through the migration of assets, he said the state’s debts to the federal government would shrink from RM970.59 million to RM78.66 million.

Zambry, who is also LAP chairman, said despite the migration of assets, profit from water supply generated by LAP would not be touched by Wamco.

“We are not selling LAP… the state’s water profit of RM100 million is ours, we are transferring only assets management. That’s all.

“If we want to build dams, we have to pay higher interest rates for bank loans. Hence, the federal government sets up Wamco to grant loans,” he added.

— BERNAMA