The federal government has agreed to write off the Pahang state government’s debt of RM2.1 billion through the water services industry restructuring agreement, said Environment and Water Minister Tuan Ibrahim Tuan Man.

He said this involved a rural area water supply debt of RM1 billion while the balance would be transferred by novation to Pengurusan Aset Air Berhad (Paab).

Paab will build water assets in Pahang before leasing them to...