KUALA LUMPUR: The Langat 2 Water Treatment Plant and Distribution System (LRAL2) will begin supplying 325 million litres of treated water to residents in the Klang Valley in August.
The volume accounts for 25% of treated water from the first phase of the project.
Pengurusan Aset Air Bhd (PAAB) chief executive officer Abdul Hadi Ali said the water supply would benefit 325,000 user accounts.
“We will begin the testing and commissioning process of the LRAL2 beginning May 21 and it is expected to be completed in mid-August.
“After that, we can hand over some of the treatment plants to water operators in Selangor,” he told reporters after the presentation of zakat (tithes) and Aidilfitri aid from PAAB here today.
Hadi said the first phase of the LRAL2, which is expected to be completed by 2022, will supply 1,130 million litres of water a day and increase the water supply reserves in Selangor.
The entire LRAL2 project is divided into three phases, comprising a water treatment plant, which will supply 565 million litres of water per day to the Hulu Langat Reservoir.
On the re-purchase of water treatment concessionaire Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH) and leasing it back to Pengurusan Air Selangor Sdn Bhd (Air Selangor), Hadi said the acquisition process had been completed.
“The transfer of shares has been completed,” he said.
On Sept 28, 2018, Syarikat Pengeluar Air Selangor Holdings Bhd (SPLASH Holdings) entered into a conditional agreement to sell its wholly-owned subsidiary, SPLASH, to the Selangor government for RM2.55 billion.
The acquisition of SPLASH by Air Selangor is part of efforts by the state and federal governments to consolidate and restructure the water industry in Selangor, Kuala Lumpur and Putrajaya.
The water deal is aimed at increasing the water reserve margin and reducing non-revenue water, as well as achieving the objective of uninterrupted water supply in the Klang Valley and throughout the country.
The cost of acquiring SPLASH was fully borne by Air Selangor, with RM1.9 billion financed through funds channelled by PAAB. The remaining RM650 million will be paid in instalments over nine years.