By SHAHEERA AZNAM SHAH / Graphic By TMR
Taliworks Corp Bhd and Gamuda Bhd have been offered to remain as operator for the operations and maintenance (O&M) of the Sungai Selangor Water Treatment Plant Phase 1 (SSP1) and Sungai Selangor Water Treatment Plant Phase 3 (SSP3) respectively following the acquisition of Syarikat Pengeluar Air Selangor Sdn Bhd (Splash) by Pengurusan Air Selangor Sdn Bhd (Air Selangor).
In an exchange filing on Tuesday, Taliworks noted its subsidiary, Sungai Harmoni Sdn Bhd, has received a letter of offer from Air Selangor.
Taliworks said it is required to revert with the acceptance of the offer in six days or as determined by Air Selangor.
The new SSP1 agreement shall commence from the operational date which has yet to be determined until Dec 31, 2029.
“Sungai Harmoni has been informed that Air Selangor, the entity identified by the Selangor state government to take over the water supply and distribution services in
the Selangor, Kuala Lumpur and Putrajaya, on a date to be determined, will enter into a share purchase agreement with Syarikat Pengeluar Air Selangor Holdings Bhd for the acquisition of Splash,” it said.
In facilitating the Splash’s restructuring exercise, Taliworks is requested to terminate the existing O&M agreement with Air Selangor and Splash and subsequently enter into a new agreement.
Upon the termination of the agreement, Splash will provide full settlement of the amount owed to Sungai Harmoni under the existing O&M agreement, of which the amount is equal to 90% of the outstanding fee.
“An upfront payment of 10% of the settlement amount should be paid no later than 14 days from the operational date, or such earlier date as may be mutually agreed by the parties,” it said.
Meanwhile, Gamuda is entering into a new O&M agreement of the SSP3 with Air Selangor.
In a separate filing to the local bourse, Gamuda said the new SSP3 agreement shall commence from the operational date until Dec 31, 2029.
It said its 80%-owned subsidiary, Gamuda Water Sdn Bhd, has received a letter of offer from Air Selangor to terminate the existing O&M agreement under the SSP3 with Splash and would seek settlement of the outstanding Gamuda Water’s receivable from Splash.