SHAH ALAM: The Selangor government has saved RM120 million after barely a year of managing solid waste collection on its own, Menteri Besar Tan Sri Abdul Khalid Ibrahim said yesterday.
He said that as a result, the state government would introduce a 25 per cent rebate on assessment fees for low--cost flat owners.
"We have saved RM120 million in operating costs," Abdul Khalid said after handing over 50 compactors to the Shah Alam City Council (MBSA) and Petaling Jaya City Council (MBPJ).
"We intend to give a discount on assessment fees for low--cost flats occupied by their owners."
He said flats that were being rented out would not be eligible.
The joint management bodies would be in charge of identifying recipients with the help of the commissioner of buildings.
Abdul Khalid said contractors working for local councils could lease the compactors from the local authorities but he did not reveal the fees for this service.
The 50 compactors were sourced and purchased from Intercoach Sdn Bhd by state investment arm Kumpulan Darul Ehsan Berhad (KDEB) for RM14.5 million through bank loans underwritten by the Menteri Besar Incorporated.
The two councils would determine the amount to be charged to contractors.
The money collected would go to KDEB to repay the bank loans.
The KDEB would also maintain and service the compactors to ensure they operated at optimum level.
Twenty--eight compactors will be delivered to the Shah Alam council, 18 to the Petaling Jaya council, and two to KDEB subsidiary Hebat Abadi Sdn Bhd, which provides municipal solid waste collection services in Shah Alam and Kuala Lumpur.
The two remaining trucks will be reserved in case of breakdowns to prevent a disruption in garbage collection.
Abdul Khalid said council workers would be trained to drive and maintain the compactors to retain dealing with solid waste management teams in local councils.
He said the state government may buy more compactors to cater to the needs of local councils for a smoother solid waste management system.
The Selangor government took over garbage collection and public cleansing responsibilities from concessionaire Alam Flora Sdn Bhd in October to reduce expenditure.
Local councils, however, had a rocky start due to logistic problems.
There had been allegations of sabotage by contractors sacked by local councils for poor performance.
The state government had since decided to purchase compactors, extend the period of delivering waste to the Jeram landfill and operate a transfer station in Section 21.