PIARA

PRESS RELEASE

DATE: 10 SEPTEMBER 2011 (SATURDAY)

IWK (Indah Water Konsortium) PRIVATISATION PLAN IS AGAINST WATER SERVICES INDUSTRY ACT 2006

Association of Water and Energy Research Malaysia (AWER) is against the IWK privatisation plan proposed by 1MDB (1 Malaysia Development Berhad) as it is detrimental to social and economic justice in Malaysia as well as it is not in line with laws in Malaysia.

Water Services is divided into water treatment, water supply and sewerage services. The Water Services Industry Act 2006 (WSIA) is the law that governs all water services technically, economically and their respective services quality for Peninsular Malaysia and Federal Territory of Labuan. This law was enforced fully beginning year 2008.

The core objective of WSIA is to prevent any type of concession agreement and both water and sewerage operators are required to migrate into a licensing regime where their performance will be monitored strictly by National Water Services Commission (SPAN). The law is also aiming to achieve a balance between economic and social needs in managing water services to ensure the services are affordable for all and on par with international standards. This will lead to equitable tariff setting and a transparent management of overall water services.

As reported in few local dailies, 1MDB and the unscrupulous businessmen behind this deal is misleading the public as well as going against the WSIA.

The solutions that this group of people is pushing to achieve are somewhat similar to the steps proposed by Indah Water Konsortium Sdn Bhd (IWK) that has been fighting to get nod from the Federal Government for years. These solutions are nothing new. The current IWK management is stuck with failed PRIVATISATION that took place in its inception. Therefore, the similar privatisation approach is not correct and there is no legal room for that to take place as WSIA is enforced since year 2008.

Currently, SPAN has already stop non-connected sewerage desludging monopoly by IWK and open up the license for other companies as well. For connected sewerage services (billed by IWK or local government), there have been few plans to revive the sector just like the water treatment and supply. The way forward for sewerage services is also via licensing regime. There will be NO MORE CONCESSION AGREEMENT.

If any authority approves this proposal by 1MDB, AWER would not hesitate to take them to court. Stop using unwarranted ways to get business. Any deal that is not in line with WSIA is an offence.

PIARAPAKARAN S.

President

IWK Privatisation Plan is Against Water Services Industry Act 2006

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