By S. Ista Kyra
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IPOH: Perak Water Board (LAP) is expected to have zero debts by first quarter of next year, with the migration of almost RM1 billion in assets to the Water Asset Management Company (WAMCO).
Perak Menteri Besar Datuk Seri Dr Zambry Abd Kadir said the state government was currently negotiating the terms with the Federal government to be part of the national water industry consolidation plan.
“Once negotiation is completed sometime early next year, LAP’s RM800 million debt in loans will be expunged,” he told reporters after chairing an LAP meeting at his official residence here Monday.
Also present was LAP general manager Datuk Mohd Yusof Mohd Isa.
He pointed out that since 2008, the state government had subsidised RM238.5 million for supply of water.
“The subsidised amounts have been absorbed by LAP,” he said.
He pointed out that the national water restructuring plan would relieve the state and concessionaires off the heavy burden of funding future water infrastructure development.
“The development of dams and the reservoirs will fall under the purview of the federal government and PAAB,” he said.
Zambry stressed that the state’s water tariffs will not increase with the acquisition.
“In fact, since LAP will have no debts, there is no reason to raise water prices,” he said.
He added that the migration of assets also did not mean there was the sale of water.
“Only the assets such as dams and reservoirs are transferred to PAAB…water supply is still maintained by the state,” he said.
He said as of Oct 31 this year, the state had sold RM229.76 million worth of water in comparison with RM225.35 million last year.
“This year the profit from water sales is expected to touch RM105 million in comparison with RM102.5 million last year,” he said.
In the state assembly sitting last month, Zambry announced that the state government’s debt with the Federal government is expected to shrink from RM970.59million to RM78.66mil with LAP’s migration of water assets to PAAB.
Read more: Perak Water board to have zero debts by Q1 2012 – Latest – New Straits Times http://www.nst.com.my/latest/perak-water-board-to-have-zero-debts-by-q1-2012-1.15813#ixzz1flTRWOZF
