Syabas Water Supply Agreement

Syabas Water Supply Agreement: All You Need to Know

The Syarikat Bekalan Air Selangor Sdn Bhd, or better known as Syabas, is the primary water supplier in the Malaysian state of Selangor. The company has been in operation since 1996 and has been providing clean and safe water to millions of households in the state. Recently, Syabas signed a new water supply agreement with the Selangor government, and it has received significant attention from the public. In this article, we`ll discuss what the agreement entails and what it means for the people of Selangor.

The Background of the Syabas Water Supply Agreement

In 2009, the Selangor government initiated the restructuring of the state`s water supply industry. The move aimed to improve the efficiency and quality of water supply services in the state. The restructuring involved the acquisition of water assets from water concessionaires, including Syabas. The state government argued that the acquisition would allow them to gain full control of the water supply industry, which would lead to better services.

However, the acquisition process faced numerous legal challenges, and it took longer than anticipated. During this period, the Selangor government opted to extend the water supply contracts with existing concessionaires, including Syabas. The contract extensions were necessary to ensure water supply services continued uninterrupted while the acquisition process took place.

Syabas`s previous contract expired in 2019, and the company continued to provide water supply services under a temporary agreement. The company had been negotiating a new agreement with the Selangor government, which finally came to fruition in June 2021.

What Does the Syabas Water Supply Agreement Entail?

The new Syabas water supply agreement is for a period of 10 years, commencing from 1st July 2021 to 30th June 2031. The agreement covers the installation, operation, and maintenance of water treatment plants, distribution systems, and customer services. The agreement stipulates:

1. The water tariff charged by Syabas will be reviewed every three years

2. Syabas must maintain a minimum water supply capacity of 1,650 million liters per day

3. The company will be responsible for the cost of operating and maintaining the water supply infrastructure

4. Syabas must adhere to the national water quality standards

The agreement also provides for a mechanism to resolve disputes between Syabas and the Selangor government. The dispute resolution mechanism involves a three-tier process, starting with negotiations, mediation, and finally, arbitration.

What Does the Syabas Water Supply Agreement Mean for Selangor Residents?

The signing of the new Syabas water supply agreement means that Selangor residents can continue to receive reliable water supply services. The agreement ensures that Syabas will continue to operate and maintain water treatment plants and distribution systems. It also sets a minimum water supply capacity, ensuring that there is always enough water to meet demand.

The agreement also provides for a tariff review process every three years. This is essential because it ensures that Syabas charges a reasonable tariff that reflects the actual cost of providing water supply services. It also ensures that the tariff charged is affordable for residents.

Conclusion

The Syabas water supply agreement is a crucial development in the Selangor water supply industry. The agreement ensures that Selangor residents continue to receive reliable and affordable water supply services. It also sets clear guidelines on the responsibilities of Syabas and the Selangor government. Furthermore, the agreement provides a mechanism for resolving disputes between Syabas and the Selangor government, ensuring that any disagreements are dealt with transparently and effectively.