Is KPS due for another re-rating?The water rates issue have just been agreed between the Pahang and Selangor governments. Selangor will now pay an additional 5 sen per litre of raw untreated water to Pahang in this water transfer project.
Now that the main bugbear affecting the project has been permanently removed, what next? Will the earlier agreement between Kumpulan Darul Ehsan Berhad (KDEB) and KPS be enforced? This is now quite unlikely because water is now on the concurrent list of the Federal Constitution and the Federal government might be involved in some parcels of its development.
What I can foresee now is that the agreement between KDEB and KPS will be reviewed in the light of these new developments. I believe KPS will still get the lion share of the development and maintenance of this project. If the rumour on the takeover of Puncak Niaga comes true, it will certainly put KPS as the new kid of the block and head honcho of waterworks in Malaysia.
So do you think KPS is going to be re-rated by the market on Thursday when market reopens? Your guess is as good as mine.
Now that the main bugbear affecting the project has been permanently removed, what next? Will the earlier agreement between Kumpulan Darul Ehsan Berhad (KDEB) and KPS be enforced? This is now quite unlikely because water is now on the concurrent list of the Federal Constitution and the Federal government might be involved in some parcels of its development.
What I can foresee now is that the agreement between KDEB and KPS will be reviewed in the light of these new developments. I believe KPS will still get the lion share of the development and maintenance of this project. If the rumour on the takeover of Puncak Niaga comes true, it will certainly put KPS as the new kid of the block and head honcho of waterworks in Malaysia.
So do you think KPS is going to be re-rated by the market on Thursday when market reopens? Your guess is as good as mine.
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