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The Water Services Industry Act 2006 [Act 655] came into operation in all states of Peninsular
Malaysia and Federal Territories of Putrajaya and Labuan on 1st January 2008. Under section 4 of
the Act 655, a person who owns a public water supply system or public sewerage system or any
part of the systems; or undertakes, provides or makes available any water supply services or
sewerage services or part of the services by means of operating a public water supply system or
public sewerage systems will have to obtain an individual licence which shall be granted by
- A facilities licence - a licence that authorises the holder to own a public water supply or any
- A service licence - a licence that gives the holder to undertake, provide or make available any
water supply services or part of the services by means of operating a public water supply
system.
Under the water service licence, there are two (2) categories of licences to be issued as follows:
2) Water Distribution - authorises the holder to distribute and supply water to consumers by
Before a formal application is made, applicants are advice to contact SPAN to discuss on the
application process and the information we will require. This will provide an early opportunity for all
parties to raise any significant issues of concern and allow these to be addressed. It also gives
applicants the opportunity to discuss and clarify any queries they have before submitting formal
applications.
1) Whether the application is for a facilities licence, a service licence or a combination of both
2) A certified true copy of approval letter or the application letter from the State Government to
5) Corporate information, including the particulars of any company referred to in paragraph (4)
and particulars disclosing the ultimate beneficial shareholders of the applicant and any
company referred to in paragraph (4) which holds an individual or class licence together with
information detailing the direct and indirect shareholdings of all their shareholders;
6) Aany other individual or class licence held by the applicant under the Act 655, its group of
companies and any company which is deemed to be associated with a director of the applicant
7) Description of the facilities or services to be operated or provided and location of the facilities;
9) The names of the persons dealing with the application, his or her position, telephone, fax
numbers and e-mail address to whom queries on the application can be directed
Applicant will need to demonstrate that they have the financial and managerial capability to carry
out the licensed activities stipulated in the Act 655. Applicant is required to submit the following:
2) A three year rolling business plan setting out the applicants plan for expansion, maintenance,
repairs, upgrading, improvement, refurbishment or alteration of the public water supply system.
The business plan must include the anticipated capital and operational expenditure, proposed
financing plan, including the sources of financing, whether domestic or foreign, for undertaking
such activities. SPAN will set out from time to time the information that should be included in
the business plan and the verification statements that SPAN expects to accompany it;
3) The proposed operating and maintenance procedures, including a water or sewerage safety
4) The proposed standards of performance and key performance indicators to be adopted for
5) The latest audited accounts and annual reports (for the preceding three years), memorandum
and articles of association and certified true copies of Forms 24, 44 and 49 under the