1Malaysia Help Solve Water Supply Problem For 100,000 Labuan Islanders

The more than 100,000 islanders here can now look forward to better days ahead as the water crisis plaguing them since 2009 will come to an end with the completion of Phase 2 of the undersea pipeline project.

The RM387 million project pipeline, spanning about 25.7 km from Padas River in Beaufort to the island is expected to supply an additional 38 million litres of water daily for domestic use and the booming oil and gas industries.

Labuan now gets 60 million litres daily. With the completion of the project, the island will have a surplus supply of water, increased to 96 million litres, and is expected to be able to meet rising demand till 2020. The current demand is 56 million litres daily.

The pipeline will be connected to four treatment plants -- at Sg Pagar, Kerupang, Jalan Kolam and Bukit Kuda -- and 27 reservoirs.

To the grateful islanders, the project demonstrates concern for their woes in line with the 1Malaysia concept of People First, Performance Now, introduced by Datuk Sri Najib Tun Razak.

And they are only too happy to welcome the Prime Minister when he arrives tomorrow to launch the pipeline.

But how did the water crisis come about in the first place?

Due to tremendous development, Labuan began to face a shortage of water some years back, and rationing was imposed, affecting people in all 27 villages on the island. Plant 1 of Petronas Methanol had to be shut down but resumed operating recently.

In 2004, the daily water consumption was 34 million litres, with an excess of one million litres. But now it has shot to 56 million litres, with the Labuan Water Department resorting to building tube wells to overcome the problem.

Twenty-seven such wells have been completed which can supply nine million litres daily.

The shortfall of water in Labuan after the setting up of Petronas Methanol is about 25 per cent. It required at least 12 million litres daily for its two plants.

The Phase 1 pipeline project, costing RM150 million, was completed in 1989 but was only able to supply 36 million litres daily.

Water Department director Sulaiman Kamisan said he was grateful to the people for their patience.

He said the Ministry of Energy, Water and Communication had done its best to ensure adequate supply of water to the islanders, but "there were times when we felt the situation was beyond our control".

The tube wells were part of the back up plan while the pipeline was the main solution, Sulaiman said.

Now that water shortage would soon be over, the islanders could even smile talking about the problem.

A 45-year-old single mother, Limah Bakri, said the water shortage affected sanitation as some people were forced to use the beach and sea as toilets.

This could have caused an outbreak of diseases, she said.

Another Labuan resident, Abdullah Ahmad, said: "To be able to wash, you need water. No point in teaching sanitation when you don't have water."

Talking about the chore of carrying water in pails and containers, his face lit up at mention of the pipeline.

"Thanks to the government, we are returning to normal life ... no more waiting for hours for drops of water," Abdullah said.

Khatijah Jistoh, 28, a housewife, said that she had to visit her family members to bath and to wash clothes.

"If there is no water supply, we had to use unclean water from the wells. We have to buy bottles of drinking water from the shops," she said.

About 4,000 students at Universiti Malaysia Sabah and Matriculation College suffered huge discomfort when water supply to their hostels slowed to a trickle, and they had to rely on tankers from the water department.

The shortage was so acute that some lecturers are reported to have asked for transfers out of Labuan.

A UMS student from Sarawak's interior, who wished to be known as Abdul Wahid, talked about the misery of having little or no water.

"Whoever gets up early will have a chance to bathe (before the water runs out)," he said.

"The worst part is that the toilets stink because there is no water to flush."

But, for him and the other students and all the islanders, tomorrow will be a special new day.- BERNAMA

OSK - Puncak Unlikely To Receive RM853 Million Compensation From Selangor Government

It is highly unlikely that the Selangor government will pay RM853 million in water tariff compensation to Puncak Niaga Holdings anytime soon, says OSK Research.

Due to the delay in receiving the water tariff compensation from the state government since 2009, the sum amounted to RM418.7 million in 2010.

Added to the sum payable of RM434.2 million in 2009, the company expected to receive RM853 million in cash from the Selangor govenment, OSK said.

"However, with regards to the strained relationship between Puncak and the Selangor government, we believe it is very unlikely," it said in a research note Friday.

The company commenced legal proceedings against the Selangor government for compensation amounting to RM471.6 million for the financial year 2010.

The company's pre-tax profit in the financial year ended Dec 31, 2010 fell to RM268.396 millionm from RM312.606 million chalked up in the same period a year ago, due to higher operating and finance costs incurred.

Revenue, however, rose to RM1.914 billion from RM1.887 billion previously due to higher water consumption.

OSK also revised downwards Puncak's target price to RM3.65 from RM3.85 previously and downgraded the stock to a "trading buy" from "buy" previously given the urgency and recent commitment by the Federal Government.

"We reckon a timeline for completion is still uncertain," it added.

Meanwhile, ECMLibra Investment Research maintained a "hold" call for Puncak but revised the earning estimates downwards to 11.6 per cent to account for higher interest expense.

"We roll forward our valuation to financial year 2011, thereby decreasing our target price from RM2.57 previously to RM2.16," ECMLibra said.- BERNAMA

Hardship Faced By Almost 100,000 People Of Labuan Ends, Says Najib

The hardship faced by almost 100,000 residents of Labuan who were facing water supply problems all this while has now ended with the commencement of operations of Phase II of the Labuan Water Supply System, costing RM387 million in Pulau Enoe Saturday.

Prime Minister Datuk Seri Najib Tun Razak, who officially opened the water supply project, said the federal government understood the 'difficulties' faced by the people of Labuan due to the lack of water supply.

He said the project proved that the government truly gave priority to the welfare of the people as emphasised in the 1Malaysia concept.

"Previously, water supply in Labuan was inadequate, there were frequent disruptions and rationing. We can imagine the great difficulty faced by the people of Labuan, but all this becomes history with the implementation of Phase II of the Labuan water supply project beginning today.

"I feel that besides its declaration as a Federal island, this is probably one occasion that is most meaningful to the people of Labuan," he said.

Najib said there were many criteria that must be met in implementing development programmes but "as a government that is set up based on the support of the people, we must place these projects within the context of the philisohy 'people first'".

"This is the best criterion and there is nothing better than the water supply project in Labuan," he said.

He said the additional capacity of 38 million litres per day was an effort by the government to provide basic amenities in line with the current needs.

He said the current requirement for Pulau Labuan was around 57 million litres per day which was expected to rise to 70 million litres per day by the year 2020.

Najib said with the completion of the Phase II Labuan water supply project, the capacity would rise to 98 million litres per day.

He said that with the additional capacity together with efforts to get other sources of water, the water requirement for the people on the duty-free island up to the year 2030 would be met.- BERNAMA

Lone judge wants Putrajaya to answer for water deal

The public has a legitimate expectation to know how water tariffs are determined, a dissenting judge in the Court of Appeal said today, disagreeing with a majority decision to keep secret the details of a concession deal between a private water company and the federal government.

Datuk Mohd Hishamudin Mohd Yunus said the court action to demand public disclosure of the deal was considered public interest litigation.

“Water is a basic necessity of life and any increase in tariffs will have an important impact on their lives.

“If one has to pay in order to have water, then the charge must be extremely nominal and affordable to the citizens. Then the process of determining the water rates or tariffs must be transparent. The citizens have a legitimate expectation to know the process involved in determining any increase of tariffs,” he said.

Hishamudin accepted the respondents’ argument that the government has a legal responsibility to the citizens and that good governance requires transparency, particularly in matters pertaining to basic human needs such as treated water.

Earlier today, the Court of Appeals had decided today to keep secret the concession agreement between Syarikat Bekalan Air Selangor (Syabas) and the federal government as well as an audit on the firm.

The majority decision was made by two of the three-man panel comprising Datin Paduka Zaleha Zahari, Datuk Seri Abu Samah Nordin and Hishamudin.

In 2007, Klang MP and co-ordinator for the Coalition Against Water Privatisation (CAWP), Charles Santiago, had filed for the judicial review seeking to declare the audit report and the 2004 concession agreement signed by Syabas, the Selangor government and the federal government as public documents.

In a landmark judgment, the High Court on June 28 last year ordered the contents of the documents to be disclosed, as requested by CAWP.

Judicial commissioner Hadhariah Syed Ismail had stated she was not convinced such a disclosure would be harmful to national security or public interest, as claimed by Syabas and the Ministry of Green Technology, Energy, and Water.

CAWP comprises the Malaysian Trade Union Congress (MTUC) and 13 others from Selangor, Kuala Lumpur and Putrajaya, including Santiago himself.

In his dissenting judgment today, Hishamudin also said the federal counsel appeared unaware of clause 45 of the concession agreement.

“But it is disclosed in the submission that according to clause 45, none of the three parties to the agreement namely, one, the federal government; two, the state government; and three, Syabas, may disclose the contents of the agreement to third parties without a mutual agreement of all three parties unless it is right by law,” he said.

In this case, the state government and Syabas have no objection to the disclosure of the concession agreement, he said.

“The High Court judge had examined both the concession agreement and the audit report, and has come to the conclusion that there is nothing that is detrimental to the national security or public order, are disclosed except that the disclosures might invite public criticisms,” he said pointedly.

He said that prior to the Cabinet meeting inquest, the audit report was already in existence and has never been classified as an official secret.

“The audit report was never prepared solely for the purpose of Cabinet discussion.

“To my mind, it cannot be the law that just [because] subsequently this audit report was discussed by the Cabinet, it just then becomes an official secret. There is no basis for the minister to withhold this audit report from the public,” Hishamudin said.

CAWP lawyer, Ang Hean Leng, today said the High Court judgment should have been upheld as average users would be “adversely affected”, adding that today’s ruling meant consumers “do not have legal standing to request for information related to the water supply and water rates”.

“We have to wait for the judgment to see what the majority [said],” Ang said, before adding that today’s decision had baffled them.

Syabas was allowed to raise water tariffs after the company said it had complied with the requirement to reduce non-revenue water by five per cent.

Non-revenue water is the difference between water produced and water lost through leakages, faulty meters and theft.

The energy, water and communications minister had earlier rejected the coalition’s request on the grounds that the concession agreement was confidential and the audit report, an official secret.

Syabas provides water for Selangor and both the Federal Territories of Kuala Lumpur and Putrajaya - MalaysianInsider

Utility Companies Encouraged To Undertake Comprehensive Asset Management

The government strongly encourages utility companies to undertake comprehensive asset management as any crisis to utilities would shake the confidence and security of the country.

Minister of Energy, Green Technology and Water, Datuk Seri Peter Chin Fah Kui said the government and industry players must ensure, that the infrastructure at present is well maintained.

"The infrastructure system for the three mains utilities is humongous and the effort which goes into its construction and maintenance is equally daunting," he added.

The total installed capacity of electricity is more than 20,000 MW in Malaysia.

For water services, there are more than 6.2 million connections and total consumption exceeds 8,550 million litres daily (MLD).

There are also 5,600 public sewerage treatment systems and another 2,000 under private care.

Chin said this in his keynote address titled, National Utility Asset Management: Towards A Better Government For Improved Level of Services, at the 1st World Congress and Exhibition on Infrastructure Asset Management here today.

"The water sector though is more complicated. The issue now is about building up the infrastructure," Chin added.

He pointed out that the investment requirement of the water supply sector for the period 2000-2050 was approximately RM52 billion, according to the National Water Resources Study 2000-2050.

As for the sewerage sector, the National Sewerage Development Plan projected that a capex of at least RM33 billion is needed over the next 30 years for upgrading and building new systems, he said.

"Since the water industry is not on full cost recovery, thus public spending is needed to finance capex. The shortage of public funding has indeed crippled the viability of the industry.

"As a result, the government has established a special purpose vehicle, Pengurusan Aset Air Bhd (PAAB), to reduce the capex burden of the services companies, with the assets of the water services companies being transferred to it," he explained.

PAAB is currently registering all the assets,including those in the three migrated states of Negeri Sembilan, Melaka and Johor.

Chin said the PAAB, which able to source and obtain competitive financing, has estimated that over RM24 billion would be required for the next 30 years, for asset build-up and maintenance.

Nevertheless, the minister said public funds would continue to be spent on utility assets, for example the US$483.9 million Pahang-Selangor Water Transfer Scheme.

Meanwhile, Chin urged the water operators and National Water Services Commission (SPAN) to check treatment plants that are continuously producing water, exceeding their design capacities.

He said these plants could not be stopped for scheduled maintenance due to the high demand but the overloading will definitely reduce its life cycle.

On the non-revenue water (NRW), which stands at 37 percent, Chin said SPAN has set NRW reduction for water companies as one of the main key performance indicators (KPI) to be fulfilled under their licensing requirement.

The NRW is mainly due to ageing pipes which require rehabilitation and replacement.

The minister noted that in Negeri Sembilan, the NRW had been reduced to 43.4 per cent in 2010 from 49.2 per cent the previous year, in Melaka to 26 per cent from 29.7 per cent and in Johor to 29.9 per cent from 31.9 per cent.

He also highlighted that maintaining national utility assets is a major issue facing not only Malaysia, but all developing nations.- BERNAMA

Commission should solve Selangor water war, says Minister

The spat between the Selangor government and Syarikat Bekalan Air Sdn Bhd (Syabas) is now left to the National Water Service Commission (SPAN) to resolve.

"SPAN acts as a regulator when it comes to such issues. They should take the necessary action to resolve the matter immediately," Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui said yesterday.

Acknowledging the "water war" in the State, he said: "There is a ministry joint committee and the Selangor government to look into the tabung budi issue.

"Nevertheless, we leave SPAN to discuss the issue with both parties."

Matters came to a head recently when Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim called on the Federal government to revoke the concession to Syabas, claiming the company breached the concession agreement.

Last month, Selangor gave Syabas 14 days to stop the tabung budi programme, but this was ignored, prompting the State government to take the concessionaire to court to have its licence withdrawn.

Under the tabung budi programme, launched last year, Syabas granted households, who received free water from the State government, to waive the subsidy and donate the money to the fund instead.

Syabas said it used the money to help defray reconnection fees for needy consumers. This subsidy for the first 20 cubic metres of free water used each month was given when Pakatan Rakyat took over the State government in March 2008.

While Selangor has yet to make good on its threat to act against Syabas, the concessionaire filed suits with the Kuala Lumpur Civil High Court on Monday against Abdul Khalid and PJ Utara MP Tony Pua over statements they made concerning tabung budi.

The State government allocated RM9 billion to buy over the whole water system from Syabas and would decide soon on the next course of action.

Abdul Khalid contended the water concession agreement with the four companies — Syabas, Puncak Niaga (M) Sdn Bhd, Konsortium Abbas Sdn Bhd and Pengeluar Air Selangor Sdn Bhd – should stop so the water industry could be taken over by the State.- MalayMail

Ministry To Intervene In Selangor Water Issue

The Energy, Green Technology and Water Ministry will intervene in the takeover of four concession companies in an effort to resolve the Selangor water issue.

Minister Datuk Seri Peter Chin Fah Kui said he would present a working paper on the solution to Cabinet this month as talks to restructure water supply had stalled.

"The Selangor government has run out of excuses. It has to be resolved fast as it will adversely affect the water industry.

"It is the ministry's final effort after Menteri Besar Tan Sri Abdul Khalid Ibrahim failed with his offers.

"The offers centred on a condition that is difficult to realise. The four concession companies could not accept the condition and offers meaning the efforts had failed.

"How can it succeed when the offers to Splash and ABASS are less than that for 2009," he told reporters after the ministry's Chinese New Year function here Thursday.

He was confident that the Selangor government would fully cooperate with the federal government for the sake of consumers and the water industry.

The four concession companies are Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Puncak Niaga Sdn Bhd (PNSB), Syarikat Pengeluaran Air Sungai Selangor Sdn Bhd (Splash) and Konsortium ABASS Sdn Bhd (ABASS).

Chin said the water issue should not be prolonged and urged the Selangor government to put aside political differences to realise the restructuring exercise.

"I can't reveal contents of the paper until it is approved. The solution is a joint effort by the Selangor and federal government.

"Hopefully, it will be the final chapter in resolving the water restructuring issue in Selangor," he added.- BERNAMA

Syabas suit will not affect Langat 2

The RM471.6mil civil suit by Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) against the Selangor government will not have any impact on the construction of the Langat 2 water treatment plant.

An analyst told StarBiz that the suit was a separate issue as it involved payment in relation to the concession agreement.

“There will be no impact on the construction of Langat 2 water treatment plant as both issues are not related at all,” she said yesterday.

Selangor state's water review panel member Charles Santiago, who is also Klang MP, said the suit would not affect the Langat 2 project as it was over claims on water tariff rates in Selangor.

Syabas is filing the suit against the Selangor state government for RM471mil for allegedly delaying a water tariff adjustment.

In the suit, Syabas said under the concession agreement dated Dec 15, 2004, which was entered between the Federal Government, the state government and Syabas, it was granted a 30-year concession to buy treated water from water treatment operators and to supply treated water in the distribution area.

In a letter dated March 31, 2008, Syabas claimed it had sent documents to the state government to support its request to increase the gazetted tariff from RM1.39 per cubic metre to RM1.89 per cubic metre.

It claimed that it had determined the new tariff in accordance with the provisions in the agreement.

The state government had failed to notify whether it had agreed to the new tariff.

It had applied to proceed with the civil action.

Lawyer Malik Imtiaz Sarwar said alternatively, the state government was seeking leave to cross-examine Syabas chief executive officer Ruslan Hassan.

Syabas counsel Datuk Harpal Singh Grewal told High Court judge Justice Anantham Kasinather that his team had filed an affidavit opposing the application.

Justice Anantham set Feb 28 for clarifications and a decision over the application.

The Selangor government said it had yet to grant approval for the construction of the Sungai Langat 2 Water Treatment Plant but details are being worked out.

The Langat 2 treatment plant costs some RM4bil, according to analysts' estimates, while the entire water transfer project of which Langat 2 is part of, is estimated to cost some RM9bil.

Scheduled for completion in 2014, the project will pump 1,890 million litres of raw water a day from a river in Pahang to the plant.- TheStar

‘End Syabas concession’

Selangor has asked the Federal Government to revoke the concession given to Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), claiming that the company had breached the agreement.
Mentri Besar Tan Sri Khalid Ibrahim said the officer-in-charge of water regulatory services in the state, Datuk Nordin Sulaiman, had officially written to the Federal Government, but has yet to receive a reply.

He claimed that Syabas had breached the agreement when, collecting money for its charitable fund (Tabung Budi), it collected funds from consumers who opted to forego the subsidy provided by the state government for the first 20 cubic metres of water used each month.
Syabas, which claimed that about RM350,000 had been collected for the fund to date, had said it would be used to help those who do not have access to proper water supply in the state.

Khalid told a press conference yesterday that the state government would go to court over the matter if the Federal Government refused to accede to its requests.
On the suits filed by Syabas against him and Petaling Jaya Utara MP Tony Pua over statements they were alleged to have made concerning Tabung Budi, Khalid said they would not make them change their stand on the issue.

“Syabas has no right to collect the money (subsidy given by the state government) for Tabung Budi,” he said.
Khalid had said Syabas was receiving double payment given the state was already paying the concessionaire for free water supplied to Selangor residents.
Under the fund, Syabas collects money from Selangor residents who are willing to relinquish the 20 cubic metres free water, valued at RM11.40, provided by the state government. The suits were filed at the Kuala Lumpur Civil High Court on Monday.

Khalid further contended that water concession agreements with four companies – Syabas, Puncak Niaga (M) Sdn Bhd, Konsortium ABBAS Sdn Bhd and Syarikat Pengeluar Air Selangor Sdn Bhd – should be ended so that the water industry in Selangor could be taken over by the state government.
On the reluctance of the four to terminate the concessions because the state government’s offer to buy over the companies was not attractive enough, Khalid said they could bring the matter up for arbitration.

He said the Selangor Government had asked the Federal Government to decide on the matter as under the Water Services Industry Act 2006, the Federal Government reserved the sole right to determine the take-over price of water assets, which when decided could not be challenged in a court of law. - TheStar

Selangor Government Wants Syabas' Concession Revoked

Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim said Tuesday that the Federal government should revoke the concession given to Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), claiming the company had breached the concession agreement.

Speaking to reporters here Tuesday, he said the officer-in-charge of water regulatory services in the state, Datuk Nordin Sulaiman, who is also the state economic planning unit director, had officially written to the Federal government on this and that the state government was awaiting a reply.

He claimed that the company (Syabas) had breached the concession agreement when it collected funds from consumers who opted to forego the subsidy provided by the state government for the first 20 cubic metres of water used each month, for a charitable fund (Tabung Budi).

Asked what the state government would do if the Federal government did not accede to the request (revoke Syabas' concession), Abdul Khalid said:"We will go to court."

He also said that the Syabas had filed suits against him and Petaling Jaya Utara MP Tony Pua over statements they made concerning Tabung Budi.

"However, this suit will not make us change our stand. Syabas has not right to collect the money (subsidy given by the state government) for Tabung Budi," he said.

Selangor to give full report on water assets

PR has been unable to meet its campaign mandate of free water to all Selangor residents due to the ongoing saga.

Tan Sri Khalid Ibrahim said today that Selangor will publish a full report of all water assets in the state by March to ensure that Selangor’s takeover of the state water industry from four water concessionaires is done in a “fair manner.” 

 

The state government had made an offer of RM9 billion for the assets of the concessionaires last month but they had rejected it, calling the offer “ambiguous.”
The move to detail all water assets in the state appears to be a bid to pressure the concessionaires to accept what Mentri Besar Khalid has said is his final offer.
Khalid said that the current deal was “an opportunity for concessionaires to reap high profits. Even in the agreement document, concessionaires are allowed to use the assets without any charge.”

The state government will conduct fixed asset sightings on water treatment plants, pipe supplies and water reservoirs before publishing the report.
The report, which will list down the location as well as individual and collective value of each asset, will also take into account technical details concerning water treatment and management of water in the state.
The state government said last month that it was willing to pay up to RM9 billion for the assets of all four water concessionaires in the state before selling all assets to the federal government.
The national water industry restructuring scheme has been delayed by a dispute over the price of the privatised assets in Selangor, which also provides water to the federal territories of Kuala Lumpur and Putrajaya.

Selangor made the RM9 billion combined offer to the four water concessionaires in Selangor — Puncak Niaga (M) Sdn Bhd (PNSB), Bekalan Air Selangor Sdn Bhd (Syabas), Konsortium Abass Sdn Bhd (ABASS) and Syarikat Pengeluar Air Selangor Sdn Bhd (SPLASH).
Khalid has said that the total water assets in Selangor were currently worth more than RM10 billion, which the previous state administration had never taken into account when agreeing to the privatisation of the water industry in Selangor.

Under the new offer, water concessionaires could bring up any dispute to an international arbitration court.
Selangor, which already owns 80 per cent of the state’s water supply assets, is preparing to take over the remaining assets after Putrajaya said it did not object to direct negotiations between the state government and concessionaires.

Selangor intends to retain management of the water assets, which also cover the federal territories of Kuala Lumpur and Putrajaya. A project to get water from Pahang has also been delayed because of the issue.
The state government has made two previous offers for the water assets. The first offer, RM5.7 billion for assets and equity, was turned down by all four players, while the second RM9.4 billion offer — this time including liabilities — was rejected by Syabas and sister company PNSB.
Both Syabas and PNSB are controlled by Puncak Niaga Holdings Bhd (PNHB) which belongs to executive chairman Tan Sri Rozali Ismail, who is Selangor Umno treasurer and the 31st richest man in Malaysia, according to Forbes.

The two-year water-restructuring saga has been characterised by finger-pointing by the water authorities as well as federal and state governments keen on deflecting blame for the deadlock.
The impasse began soon after parties that formed the Pakatan Rakyat (PR) unexpectedly took control of Selangor, Malaysia’s richest state, in the last general election.
Since then, privatisation plans for the water industry have been put in deep freeze as the federal and state governments engage in what industry watchers have called “excessive politicking”.
Control of Selangor’s water assets is important to PR so it can set tariffs and fulfil its campaign promise of free water for all residents in the state.- MalaysianInsider

Kelantan Will Not Raise Water Tariff - Nik Aziz

The Kelantan government Wednesday gave its assurance that it would not raise the water tariff despite the higher costs of electricity and water treatment.

Menteri Besar Datuk Nik Abdul Aziz Nik Mat said the government was to raise the tariff in October last year but decided against it due to the hike in the prices of petrol and other essentials.

"We will try very hard not to increase the tariff," he told reporters after chairing the state executive council meeting, here Wednesday.- BERNAMA

MTUC Has No Legal Right To Gain Access To Water Concession Agreement, Court Hears

The Malaysian Trades Union Congress (MTUC) and 13 others do not have the legal right to have access to the audit report and water concession agreement signed between the Federal Government, the Selangor state government and Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), the Court of Appeal here heard Tuesday.

This argument was forwarded to the three-man appellate court panel by senior federal counsel Datin Azizah Nawawi who is representing the Federal Government in its appeal to reverse a High Court ruling ordering it (federal government) to make public those documents.

The federal government had on July 2 last year obtained a stay on the High Court ruling pending this appeal.

Azizah submitted that the application by MTUC and 13 water consumers for a judicial review of the decision of the then Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik in denying their request to make public those documents, was misconceived.

She said this was because they did not have the legal right to gain access to the documents and therefore did not have the locus standi (legal standing) to file the judicial review application.

"There is no federal law which allows the respondents to have access to the audit report and the concession agreement," she said.

Azizah said since the documents were classified confidential under the Official Secret Act 1972 (OSA), the minister was bound under the same act from divulging on official secret and it was an offence to do so.

She said the High Court erred in law when she granted a mandamus order to the respondents without ascertaining whether the minister had a legal duty to give the documents to the respondents as well as ascertaining whether the respondents had legal right to the documents.

She said the respondents were not adversely affected by the minister's rejection to grant them access to the documents because the respondents did not have any legal right to the documents.

"As such the minister had not breached the legal rights of the respondents when he refused to grant MTUC access to both sets of documents," she said.

Azizah, however, said parties to an agreement may by mutual agreement disclose the agreement to a third party.

The panel comprising Justices Datin Paduka Zaleha Zahari, Datuk Wira Abu Samah Nordin and Datuk Mohd Hishamudin Mohd Yunus have deferred their decision to Thursday as they indicated that they required time to deliberate on the issues raised in the appeal.

MTUC and 13 others including its former chairman Syed Sharir Syed Mohamud and two children, aged 10 and 15, obtained leave from the court on June 14, 2007, to initiate a judicial review against the minister's refusal to grant them access to the documents.

They said that as water consumers in Selangor, Putrajaya and Kuala Lumpur, they had the right to gain access to the audit report and the concession agreement signed Dec 15, 2004.

They claimed that the audit report formed the basis for the 15 per cent increase in water tariff in the Klang Valley announced on Oct 14, 2006.

They contended that the government was obliged by law to act in a transparent manner and was responsible in the usual enforcement of regulations pertaining to the water market and in a situation which gave rise to suspicion that the water market was being used for profiteering.

Earlier, their counsel Malik Imtiaz Sarwar had submitted that his clients had the right to gain access to the documents because access to water was a basic human right and that water supply was monopolised by Syabas in Kuala Lumpur, Putrajaya and Selangor.

He said the audit report was not "secret" under OSA merely because it was part of the documents deliberated by the Cabinet for the calculation of non-revenue water in the cabinet meeting on Oct 11 2006.

Malik said in fact both the Government of Selangor and Syabas did not have any objection to the documents being made public - BERNAMA

Price of RON97 will fluctuate every month, says minister

The price of RON97 petrol will be determined at the end of each month due to the managed float of oil price, says Domestic Trade, Consumerism and Co-operatives Minister Datuk Seri Ismail Sabri Yaakob.


“We will calculate the average oil price from the 1st to the 27th of each month and the average price will determine the price for the next month,” he said after launching Bank Rakyat i-Debit card Tuesday.

The price of RON97 increased by 10 sen to RM2.50 per litre, earlier this month.
Ismail Sabri said this would mean that the price of RON97 would fluctuate every month as it depended on the price of crude oil in the global market.

The RON97 petrol price also rose by 10 sen per litre to RM2.40 on Jan 4. - TheStar

Melaka Propose To Build Dam And Reservoir To Curb Floods

Melaka Chief Minister Datuk Seri Mohd Ali Rustam has proposed to build a dam and reservoir in the state to reduce floods.

Mohd Ali said the proposed dam would be build at Sungai Gangsa while a reservoir in Belimbing Dalam, Alor Gajah and Lipat Kajang, Jasin are also in the pipeline.

"I will submit the proposal directly to Prime Minister Datuk Seri Najib Tun Razak tomorrow," he told reporters after visiting flood victims at Sekolah Menengah Kebangsaan Munsyi Abdullah here Tuesday.

Mohd Ali said the state government was also studying possibilities to widen and deepen some of the rivers, especially Sungai Gangsa, to avoid floods after a heavy downpour.

He added that the flood situation in the state had improved considerably at noon today as flood waters had subsided in some areas, but the condition would be monitored closely.

As of noon, 3,396 flood victims remained at 21 relief centres throughout the state, he said.- BERNAMA

Selangor touts arbitration as takeover bid sinks

The Selangor government has repeated its call for international arbitration to fix a fair price for water players’ assets and liabilities, following their rejection of the state’s takeover offer.
The state government said in a statement today, however, that none of Selangor’s four concessionaires appeared interested in this proposal, which it says is the “best method” for settling the issue of value.
Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) declined the state government’s RM9.3 billion offer, while Puncak Niaga (M) Sdn Bhd (PSNB) and sister company Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) both issued requests for clarification.

Kumpulan ABASS Sdn Bhd was the only concessionaire that accepted conditionally but the offer lapsed as the Selangor government had stipulated that all four players must accept the offer together or not at all.
Selangor will discuss with Putrajaya how best to proceed following this latest setback in the state’s two-year battle to consolidate the water industry, the statement added.

Selangor’s attempt to revamp water industry faces another deadlock

The water industry restructuring in Selangor is facing another deadlock as only Kumpulan Perangsang Selangor Bhd has responded positively to the state government's offer which lapsed yesterday regarding the acquisition of Konsortium Abbas Sdn Bhd.
Last Friday, state-controlled Kumpulan Perangsang, which owns about 55% of Konsortium Abbas, announced that it had accepted the Selangor government's offer to acquire all the equity in Konsortium Abass for RM9.39 per share.

The acceptance is on condition, among others, that all liabilities owing to holders of the fixed-rate serial bonds of RM738mil are fully assumed or settled by the Selangor government.
According to ECM Libra, this is the only good news that have come out on the latest attempt at consolidating Selangor's fragmented water industry.

“Last Friday, shareholders of Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) announced that the company was unable to accept the offer to acquire 100% equity in Splash valued at RM5.95 per share.
“Meanwhile, Puncak Niaga Holdings Bhd had, on Jan 26, announced that Puncak Niaga (M) Sdn Bhd (PNSB) and Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) are unable to table any proposal to shareholders until a clear and unambiguous offer is received,” the brokerage said in a report yesterday.
A Selangor government official told StarBiz that the state was always open to discussion on extending the deadine for the latest offer.

In a filing with Bursa yesterday, Puncak Niaga Holdings said it believed the conditional offers made by the Selangor government to acquire Puncak Niaga and Syabas “have lapsed” due to the rejection from Splash.
It said the conditional offer for PNSB and Syabas was, inter alia, conditional upon the Selangor government having, by virtue of acceptance of the concurrent offers, acquired or unconditionally contracted to acquire no less than 100% of the voting shares in Splash and Konsortium Abass and no less than 100% of the Konsortium Abbas' redeemable cumulative preference shares.

“Following the decision made by Splash on Jan 28, the company is of the opinion that the conditional offers are therefore deemed to have lapsed, with no further action to be taken by PNSB and Syabas respectively,” it said.- TheStar