Outdoor water filters may eliminate free chlorine and minerals

AN INCREASING number of consumers are installing outdoor water filters at their houses in addition to the filters inside the home.
While Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) insists that it is unnecessary to install an outdoor water filtration system as it would eliminate free chlorine and minerals from treated water, water filter companies claim otherwise.

National Water Services Commission (SPAN) CEO Datuk Teo Yen Hua said that generally, the water from the public water supply system was safe and met the Malaysian Drinking Water Standards set by the Health Ministry, which were based on the World Health Organisation standards.

The water contains chlorine as a disinfectant and fluoride as required by the Health Ministry to prevent tooth decay among children, but some outdoor water filters or ‘point-of-entry’ filters installed at the meter tend to remove these two elements.

 

 

Good enough: Roowina (third from right) drinking the unboiled treated water supplied by Syabas to prove that the water is of drinkable quality. Joining her are Uniten deputy vice-chancellor Prof Dr Kamal Nasharuddin Mustapha (right) and Syabas water quality and asset department senior general manager Muhamad Darif Idris (second from right).

“In complying with the Drinking Water Standard set by the ministry, the water operator has to ensure that there is some residual or free chlorine of between 0.2 and 5mg/l in the distribution system.
“The residual chlorine acts as a shield to counter or prevent contamination. Without it, water stored in the tanks will not be protected against possible contamination,” Teo said.

To ensure the supplied water is safe, the ministry’s National Water Surveillance Programme tests samples at various locations in the water supply system regularly for certain parameters. The Chemistry Department also regularly tests the water for other parameters.
“Water treatment operators conduct their own tests at the treatment plant at least every two hours to ensure that the treated water complies with the standards.

“SPAN also carries out regular audits at treatment plants and distribution systems to regulate the water quality,” Teo said.
Nonetheless, silt or other particles might enter the system when repair works are carried out on burst or leaked pipes, although the pipes need to be flushed before the supply is restored.

“Under such circumstances, the water is still safe from any bacteria as the water is chlorinated,” he said.
Waterco, a water filter company, said its point-of-entry filters are designed not to remove chlorine, but only other impurities and sediment resulting from old pipes.

“Our consumers are constantly reminded that chlorine is essential, especially if the water is not for drinking.
“Filters to purify drinking water can be installed in the kitchen and our point-of-use units are designed to do this effectively,” Waterco (Far East) Sdn Bhd Asian region manager Yong Heng Foo said.
Another company, Bacfree, said its filters do not remove chlorine completely at point-of-entry.
“We agree that chlorine is important but excessive chlorine should be reduced, as high chlorine levels may be harmful to our health,” Bacfree technical director Dr Chee Chung Yee said.

He explained that Bacfree outdoor filters get rid of sediment (silt, rust and suspended solids) and colour, reduce excessive chlorine and its by-products such as trihalomethane, reduce and absorb harmful organic chemicals, and inmprove the smell and taste of the water.
“We keep enough chlorine to protect the water in the tanks. It plays a positive role in water storage, but the role is no longer required when you are consuming the water,” Dr Chee said.
Syabas has explained that the residue on the filters was the compound of minerals eliminated from the treated water, and the water should not contain mud or sand.

Dr Chee said the water supplied by Syabas has no doubt met the criteria set by the authority, but it was an individual’s right to seek water of better quality.
“The criteria cite the minimum required quality and do not reflect the best quality. For instance, water with turbidity below 5 NTU can appear yellowish while other developed countries set the requirement at 0.5 NTU.
“Although subtances like organic chemicals and chlorine exist in minute and permissable concentrations, they might accumulate in our body and pose potential health problems in the long run,” he said.
On the installation of water filters, SPAN offered this advice, “Consumers can install point-of-entry filters should they feel that the water is not up to their standards.

“However, they must be aware that a filter can enhance the quality of the water and can also cause the quality of water to deteriorate.”
Teo cautioned that filters can become a breeding place for harmful bacteria if not properly and regularly maintained.
“Water can backflow or get siphoned back through such filters into the distribution pipes and contaminate the water in the public system.
“We are currently developing rules to require point-of-entry filters to be installed with non-return or one-way valves to prevent such backflow,” Teo said.- THESTAR

Time To Review Water Tariff - MWA

The Malaysian Water Association (MWA) has proposed that water utility companies in the country review the current water tariff structure in their respective states as a sustainable measure to face an impending water crisis.

MWA president Ahmad Zahdi Jamil said this was because the current tariff does not promote water sustainability and besides being too cheap, it was also not punitive towards excessive use of water.

"Major states in Malaysia will be facing severe water shortage in 2014 if measures are not taken to curb excessive wastage and high non-revenue water (NRW) levels," he told reporters after the MWA's 23rd Annual General Meeting held here, today.

Citing Johor and Penang as examples, he said domestic water tariff in Johor was the highest among states in Peninsula Malaysia with RM0.61 per cubic meter compared with Penang which is the cheapest at RM0.20 per cubic meter.

Difference in tariff also affected the level of water consumed, with consumers in Johor consuming 205 litre per capita per day in 2009 compared with 286 litre per capita per day by consumers in Penang, he said.

Ahmad Zahdi said according to the Water Sustainability Index (WSI) the availability and usage of water in Malaysia had shown a drop from 64 percent in 1992 to 33 percent in 2002, a reflection that the country's water resources are rapidly depleting and have been managed unsustainably.

He said the timely review must take into consideration the affordability for the poor consumers and its ability to increase water conservation among the people.

"Increase in water tariff must modeled in such a way as not to burden the poor and it should not be done drastically. In the long run, the increase must reflect the recoverable cost," he stressed.

Malaysia recorded the highest water usage and has the cheapest tariff among countries in Asean.

On average, Malaysians consumed 280 litres of water daily, higher than Singapore (155 litre), the Philippines (175 litres), and Indonesia (130 litres).

Ahmad Zahdi also said the NRW problems which were among others caused by pipe leakages and illegal connections should also be seriously addressed.

He said in 2009, the average NRW among the states stood at 36.6 percent, with Pahang being the highest at 59.9 percent and Selangor the lowest at 19 percent.

He said the association had proposed a resolution to the federal government on the issue and hoped it would come up with appropriate allocations to address the problems.

"We need to holistically and strategically address the NRW issue in a proper manner," he added.

The association has about 2,100 members who are mostly industry players, academicians, experts and individuals.-- BERNAMA

Rakyat tidak dimaklum tarif air naik

Kenaikan tarif air yang berkuasa pada 1 April lalu amat membebankan rakyat.

Lebih malang lagi pihak Syarikat Air Melaka Berhad (SAMB) tidak membuat pengumuman khusus tentang kenaikan tarif air ini menyebabkan ramai yang terkejut dengan kenaikan mendadak bil air mereka terutama kepada keluarga besar.

Ketua Dewan Pemuda PAS Negeri Melaka, Ustaz Kamaruddin Sidek berkata tindakan pihak berkenaan tidak mengumumkan kenaikan tarif air tersebut adalah untuk mengelakkan protes rakyat.

Kamaruddin berkata tindakan ini tidak konsisten dengan kritikan kerajaan negeri Melaka yang pernah mengkritik kenaikan tarif air di Selangor dan Kedah suatu ketika dahulu.

"Tindakan menaikkan tarif air ini ada kaitan dengan tindakan kerajaan negeri yang suka membazir, bila duit dah habis rakyat dibebankan dengan kenaikan tarif untuk menampung kekurangan dana ini," ujar Kamaruddin.

Beberapa orang pengguna yang ditemui juga kesal dengan tindakan kerajaan negeri dan SAMB yang menaikkan tarif air sesuka hati.

Mat Zain Pakeh, 45 dari Bukit Baru berkata tindakan kerajaan negeri Melaka ini amat membebankan rakyat terutama mereka yang berpendapatan rendah dan mempunyai keluarga ramai.

"Tindakan kerajaan negeri dan SAMB yang tidak prihatin terhadap masalah dan penderitaan rakyat amat dikesali. Kenaikannya bukannya sedikit tetapi melibatkan jumlah yang besar terutama pengguna yang mempunyai keluarga yang ramai dan berpendapatan rendah.

"Sebagai contoh sebuah keluarga saya sebelum ini purata bilnya tidak melebihi RM35 lebih tetapi dengan tarif baru ini bilnya mencecah hampir RM50 walaupun kadar penggunaannya lebih kurang sama sahaja.

"Kerajaan negeri dan SAMB jelas tidak berhati perut menyeksa rakyat dengan kenaikan tarif ini. Sudahlah kita terhimpit dengan harga barangan yang semakin meningkat kini harga air meningkat pula," kata Mat Zain.

"Selepas ini sudah tentu harga barangan di Melaka ini akan turut meningkat terutama barang yang dikeluarkan di Melaka yang menggunakan air yang tarifnya sudah naik," tambah beliau dengan kesal.

Yani Semail, 44 dari Bukit Pulau pula mempertikaikan tindakan menaikkan tarif air ini dengan slogan BN rakyat didahulukan.

"Mana perginya slogan rakyat didahulukan jika rakyat seringkali menjadi mangsa kerajaan, bila syarikat rugi, duit habis diboroskan rakyat dikenakan dahulu dengan menaian tarif air dan sebagaiya.

"Rakyat mesti bangkit menolak kerajaan BN yang terbukti tidak prihatin kepada masalah rakyat yang sekarang ini pun sudah susah dengan kenaikan harga barang, lepas ini kita semua kena gali telaga untuk mendapatkan air yang percuma," kata Yani dengan sinis.

SAMB bertindak menaikkan tarif air pada 1 April lalu tanpa membuat pengumuman rasmi. Kenaikan itu melibatkan penstrukturan semula kadar air di mana ianya dilihat amat membebankan rakyat.

Semakan wakil Harakahdaily dalam laman web SAMB juga mendapati kadar yang dicatatkan di dalam laman tersebut masih kadar lama yang dikemaskini pada 8 September 2009.

Kadar lama ialah 55 sen bagi setiap meter padu untuk 1-15 meter padu pertama, 85 sen bagi setiap meter padu untuk 15.1 - 40 meter padu berikutnya dan RM1.33 sen untuk setiap meter padu berikutnya.

Kadar baru pula ialah 55 sen bagi setiap meter padu untuk 15 meter padu pertama, 85 sen bagi setiap meter padu untuk 15.1 - 30 meter padu berikutnya, 0.95 sen bagi setiap meter padu untuk 30.1 - 35 meter padu berikutnya dan RM1.45 sen bagi setiap meter padu berikutnya.- HARAKAH

Malacca residents to pay more for water from April

Syarikat Air Melaka Berhad (SAMB) announced an increase in water tariff for the state effective April 1, 2011.
State Public Works and Amenities committee chairman Datuk Ab Karim Ab Sulaiman said Friday that the water price hike was prompted by the increase in production costs borne by SMAB to ensure uninterrupted water supply here.

He said that 85% of water consumers, who used less than 35,000 litres a month, would be charged RM0.95 per 1,000 litre, that is, three cent more than the old rate.

For the remaining 15% who used more than 50,000 litres per month their April water bills would go up between RM1.60 to RM5.20 as they would now have to pay RM1.45 per 1,000 litres, he said on Friday.

For industrial usage, a maximum charge of RM18 would be imposed on 90% of business premises that used 100,000 litres of water in a month.

Ab Karim said the remaining 10% would be charged a minimum of RM28 a month for usage that exceeded the 100,000 litres.

For places of worship, the charge was RM0.55 for every 1,000 litres while Government premises would be charged RM1.30 for every 1,000 litres, he said.

The increase was gazetted under the Water Services Industry Regulations (Water Supply Services Rates)(Malacca State) 2010 on November 1, 2010, he said.

Malacca is the fourth state to announce new water tariffs after Kedah, Penang and Johor. - THESTAR

Water bondholders expect full payments if Govt buys back bonds

Water bondholders are not accepting any haircut in the potential government buyback of the financially-troubled bonds, according to sources. Against the point that bondholders had, in the first place, undertaken a risky investment that had not performed, the counter argument is that bondholders had played their part in the privatisation and socio-economic development of the country.

Hence, the subtle message might be that they expected the Federal Government to honour the payments in full, especially if they were to continue to support further privatisation projects, analysts said.
If Pengurusan Aset Air Bhd (PAAB), the Government's water asset management company with large coffers, stepped in to buy over the bonds, there might not be a need for a haircut, they added.
A haircut occurs if the face value of the bonds decreases.
So far, the outstanding water bonds that are rated, excluding the ones issued by PAAB, amount to RM6.7bil out of the total issued of RM9.02bil.

The issue of bond valuation by the Federal Government could be a thorny one, said analysts.
Yields have gone down over the years; therefore, the value of the bonds should increase.
Following the recent downgrade, the market value of seven sets of bonds that are rated by Malaysian Rating Corp (MARC) tumbled by about RM1bil overnight.

According to the prices set out by the Bond Pricing Agency (BPA), the drop is quite severe in some cases.
“The mood among the bondholders is mixed,'' said an analyst. “They are relieved that the Federal Government is stepping in but they are also worried how the pricing will turn out.''
Will the Government use the benchmarks as set out by the BPA for its valuation of the water bonds?
Analysts pointed out that some of these bonds were not traded every day and BPA prices were based on certain statistics.

“The situation is likely to get more complicated if the Government incorporates part of this pricing from BPA into its valuation,'' an analyst opined.
Some of the bonds are running into an event of default.
The Federal Government is believed to be planning a special-purpose vehicle or getting PAAB to buy over the bonds, Puncak Niaga Holdings Bhd is calling for a bondholders' meeting “to seek for certain waivers'' following the recent downgrades by MARC which had resulted in the rating of some of Puncak's debt to fall below the minimum required under their respective trust deeds.

Puncak, like the other water treatment operators, is suffering from a cashflow problem on a persistent mismatch between payment upstream, based on pre-agreed rates, and revenue, based on existing capped rates.

Continuing disagreements over control in distribution and sale of water as well as the fragmented shareholding structure between State and Federal Governments are not helping the situation either.
Out of the total outstanding, banks are estimated to hold about RM1bil worth of water bonds; insurance companies and pension funds may be holding about RM2bil each and the balance is with fund managers.
Banks that have to mark-to-market upon any changes on ratings are said to have recorded those losses in their trading books, which means that it will probably be reflected in the banks' income statements.- THESTAR

Govt may buy water bonds

Special purpose vehicle or PAAB believed to be on standby

PETALING JAYA: Amid strong concerns voiced by water bondholders in the financial sector, the Federal Government is believed to be planning a special purpose vehicle or getting Pengurusan Asset Air Bhd (PAAB) to buy over the bonds for which some are running into an event of default.
The Finance Ministry, after receiving urgent feedback from the bondholders that include banks, the Employees Provident Fund and Great Eastern, is likely to use the time tested method of setting up a vehicle like Pengurusan Danaharta Nasional to take over the bonds, sources said.
(Danaharta is the national asset company that was set up following the 1997 Asian financial crisis to take over ailing assets).

Facilities at PAAB are also on standby; PAAB has a coffer of RM40bil, half of which is government guaranteed. After spending RM4bil to buy over water assets in three states, PAAB still has a deep pocket.
Puncak Niaga Holdings Bhd is calling for a bondholders' meeting “to seek certain waivers'' following the recent downgrades by Malaysian Rating Corp which had resulted in the rating of some of Puncak's debt to fall below the minimum required under their respective trust deeds.

“While the current rating prevails, an event of default exists on some of the group's debt wherein the revised rating is below the minimum level. If allowed to remain, further action (if any) by the respective bondholders could result in a default on the group's debt obligations,'' said Puncak, which issued RM546.88mil of redeemable unconvertible junior notes.

Analysts pointed out that the first principal payments of Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) bonds were coming up in July; already, the water treatment operator's cashflow is affected as Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) had recently reduced its monthly payment to these operators to 42% of invoiced amounts from 45%.

“The Federal Government's stepping in will be a stop-gap measure,'' said a water sector analyst.
“Puncak will get to restructure its debt repayment profile by stretching the payment of interest over a longer period and possibly saving on costs via the issue of government papers, However, longer tenure bonds still command higher interest.''

The valuation of the bonds will be the next issue to be ironed out among the parties, as bond yields have changed over time, thus affecting the value of the bonds.
“A give-and-take approach should be adopted among all parties,'' opined the analyst.
The Federal Government's helping hand at this juncture may be a relief to Puncak but, on the flip side, analysts view this as giving the Government a leverage on the water industry.

This means that Puncak will probably not be able to ask for excessive compensation if they want to give up the water concession.
While the debt problem of water-related companies may be solved, the worry is that the equity side may be more complicated. The equity portion is owned by the concessionaires and shareholders which are fragmented between federal and state governments.

The two major issues confronting equity owners are the stalemate over control in distribution and sale of water and fragmented shareholding structure between state and federal governments.
Due to the continuing disagreements, the cashflow of Puncak will still be affected as the mismatch persists between payment upstream, based on pre-agreed rates, and revenue, based on existing capped rates.- THESTAR

Water-bond crisis should be resolved quickly

URGENT action is needed to address the problem of water bond downgrades that have caused the bonds to lose RM1bil in market value.
Banks and institutions which are mostly allowed to hold bonds only in the A categories found themselves owning single-, double- and triple-B rated water bonds which they either have to sell or provide for, as the market value has dropped drastically.

While the water restructuring issue, which affects the revenues of the firms involved, is still being sorted out by the Selangor and Federal Government, the status of these bonds remain in limbo. Some of the marked-to-market losses are expected to hit the profit and loss accounts; the provisions may be reversed if the bonds do not default.

It is true that investors should have conducted a thorough credit evaluation that took into account not just credit but also political risks. But at that time of purchase, it was not envisaged that an opposition government would prevail in Selangor.

It was assumed that all plans for the water sector and tariff increases would proceed without a hitch.
While efforts are ongoing to break the current deadlock in restructuring talks, the Federal Government is looking seriously at the financial implications, especially following the bond downgrades, on bondholders that are the banks and other institutions, and possibly down the line: their investors.

Any losses or provisions made in their books will ultimately hit investors holding shares in some of these banks or institutions which is said to include the Employees Provident Fund and Great Eastern.
The repercussions can be severe but at this juncture, very few are taking the worst-case scenario and started providing for the losses, as the Federal Government is expected to step in, based on the “too big to fail'' idea.
Analysts said among the possibilities, the Federal Government can swap the existing bonds for government-guaranteed bonds.

Some industry players said they would wait until the first non-payment of interest hits them.
In totality, the exposure of the Malaysian bond market to water-related bonds is about RM10bil, of which RM7bil is rated by Malaysian Rating Corp (MARC) and the rest by RAM Ratings.

In its downgrade announcement last Wednesday, MARC had referred to the companies' “increasingly challenged liquidity positions'' arising from the unresolved deadlock in talks between Selangor state and Federal Government as well as water concessionaires on the restructuring of water assets in the state.
Subsequently, Puncak Niaga Holdings Bhd, one of the water concessionaires, told Bursa Malaysia two days ago: “The rating actions by MARC had resulted in the rating of some of the group's debt to fall below the minimum required under their respective trust deeds.

“While the current rating prevails, an event of default exists on some of the group's debt wherein the revised rating is below the minimum level. If allowed to remain, further action (if any) by the respective bondholders could result in a default on the group's debt obligations,'' said Puncak, which issued RM546.88mil of redeemable unconvertible junior notes.

The company is calling for a bondholders' meeting “to seek for certain waivers from the bondholders to address the current situation.''
Puncak said yesterday the meeting was fixed for May 5.

Meanwhile, the timeline for the restructuring talks keeps getting pushed back with the latest deadline being the end of June or July, according to some industry players.
The test, at this crucial juncture, is whether the parties are willing to execute the plan.
As in any negotiations, there will be disagreements but among those who genuinely wish to arrive at a solution, there will always be alternatives to counter the difficulties. - THESTAR

● Associate editor Yap Leng Kuen believes where there's a will, there's a way.

RM1b wipeout due to downgrades

Players accuse MARC of being ‘trigger happy’ in downgrading water bonds

PETALING JAYA: The value of Selangor water bonds has tumbled by RM1bil since last week's downgrades on seven sets of these bonds, with the exception of Viable Chips (M) Sdn Bhd's bank-guaranteed (BG) BaIDS by Malaysian Rating Corp Bhd (MARC).

According to Bond Pricing Agency, data from April 5 (the day the downgrades were announced) to April 6 indicated that as much as RM1.05bil had been wiped off the market value of these bonds, which now mostly carry single, double or triple B' ratings instead of the previous single, double or triple A' ratings.
Financial institutions holding the bonds will likely suffer a temporary hit when they mark-to-market the losses, which will be reflected in their profit and loss accounts.

However, this can be reversed if the bonds do not default, which according to an industry player, would occur when the equity portion of this financing was wiped off.

“At the moment, the equity holders of the bonds Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) and Puncak group have the money to top up.

“Only when they cannot top up with the equity portion, can we call it a default,'' said one of the industry players, noting that at the same time, the Selangor government has a RM9bil bid for the water assets while Gamuda Holdings Bhd had offered RM10bil.

“Either way, the bondholders are covered,'' he said.

In its downgrades of about RM7bil worth of water bonds, MARC had referred to their “increasingly challenged liquidity positions'' arising from the unresolved deadlock in talks between the Selangor and Federal governments as well as water concessionaires on the restructuring of water assets in the state.
In their protest of the downgrades. industry players claimed that MARC appeared to be “trigger happy'' especially when there were already ongoing restructuring talks and that the rating agency should differentiate between debt and equity (as a default occurs only when equity is gone).
Moreover, they said the downgrades could make investors more cautious of infrastructure financing in the bonds and loans markets.

MARC chief executive officer Mohd Razlan Mohamed rebutted, saying: “We are protecting investors by informing them of the credit and political risks. Since last year, we have placed these bonds on negative watch and warned that we would downgrade if there was no progress in the talks.
“The impact of a bond valuation as a result of a rating agency's rating action is independent from a credit evaluation. We are rating only the debt portion and not the possibility of equity upside; hence, they should also not be confused.

“These investors should also carry out a thorough credit analysis and not expect bonds to carry explicit and implicit government support,'' said Razlan.

RAM Ratings deputy chief executive officer Foo Su Yin said: “A bond is classified as held-for-trading (HFT), available-for-sale (AFS) or held-to-maturity (HTM) in a bank's books.
“Depending on how a bond is classified, a change in market value has different impact on a bank's financials. A decline in the value of a bond will result in unrealised marked-to-market losses which will either be reflected in the bank's income statement if it is a HFT security, or taken out of the bank's AFS reserves in its shareholders' funds if it is an AFS security. In the event the bond is classified as HTM, there could be impairment charges that the bank has to bear in its income statement.
“The Malaysian banking industry's overall risk-weighted capital adequacy ratio (RWCAR) and total assets stood at 14.3% and RM1.58 trillion respectively as at end-February 2011.
“Even if we were to assume that in the unlikely event that all the water-related bonds outstanding in the industry of RM7.5bil (as at end-March 2011) are held by banks, they only account for 0.5% of the banking industry's total assets.

“On a worst case scenario, if all the bonds were to be fully provided for, we estimate that the industry's RWCAR would decline to 13.6% (based on February 2011 numbers) which is still considered healthy.
“This shows that the banking industry, as a whole, is in a strong position to withstand any potential impact stemming from the water-related bonds,” said Foo - THESTAR

Kelantan Residents Bring Water Issue To Suhakam's Attention

The failure of the Kelantan PAS government to provide efficient clean water supply after ruling the state for 20 years, was brought to the attention of Malaysian Human Rights Commission (Suhakam) Monday.

Participants of a "Suhakam Dialogue With The People" held in Kota Darulnaim, here, voiced their frustration over this problem which has been affecting their daily lives, to Suhakam chairman Tan Sri Hasmy Agam.

The three-hour session was attended by several non-governmental organisations, the police, government agencies and concerned individuals. Also present were Suhakam members, Prof Datuk Mahmood Zuhdi A. Majid and N. James.

Retiree Kamaruzaman Ismail said he had been staying in Kelantan for four years now and built his house here but Air Kelantan Sdn Bhd (AKSB) had failed to provide piped water to his house.

"AKSB has been telling me to be patient as it is replacing the old pipes with new ones...but the main problem is low water pressure for water to flow into my water tank.

"There seems to be no end to this problem," he lamented to the Suhakam panel.

Kamaruzaman said what was even more frustrating was that although he received no piped water supply for four years, he still received a bill of RM4 every month from AKSB.

He said he then decided to terminate the service by AKSB and resorted to obtaining underground water for his household's needs.

Kamaruzaman urged Suhakam to take their complaints seriously as besides failing to provide efficient clean water supply to residents, AKSB still imposed service charge on those who received no water supply from it.

"As there is no water, only air comes out of the pipes, with the water meters registering movement (consumption) and consumers are charged," he explained.

He also regretted the state government's failure to build drains in his housing area although after the housing plan had been approved by the Kota Baharu Municipal Council, additional allocation was requested for building the drains.

Malaysian Trades Union Congress (MTUC) Kelantan chairman Zakaria Abdul Rahman admitted that the water supply problem had been plaguing the people for so long and yet the state government failed to resolve it.

"It is regrettable that the federal government has to help out by allocating RM19 million for channelling water supply to the critical areas while the responsibility should be the state government's," he said.

Abdul Halim Yusof, who represented the Kelantan Private Schools Association, raised the problem faced by pupils of private primary schools as they were not allowed to continue their schooling in government-run religious secondary schools.

Hasmy said Suhakam would bring up the issues raised today with the Kelantan government.- BERNAMA

Sewage company’s inefficiency highlighted

A WASTE WATER consultant has called on the Government to conduct an independent audit of Indah Water Konsortium (IWK) operations to determine its level of efficiency.
The call comes in the wake of a series of bungled incidents at IWK treatment plants.
The latest bungle happened a month ago at its multi-million-ringgit Kuala Sawah Sewage Treatment Plant when workers dumped 900 tonnes of sludge into a trench in the area.
“This is not the first time IWK has found an easy way to solve its problem by dumping sludge,” said G. Parameswaran who has undertaken several waste water projects locally and abroad.

 

Not a pretty sight: Algae that has invaded the sentimentation tank after operations were tuned down due to the massive outflow of sludge.

Parameswaran, a senior consultant then with HSS Integrated Sdn Bhd, was engaged by the Government together with the British company, North West Water to undertake the privatisation of waste water in 1993 before IWK took shape.

He said IWK was a liability rather than an asset to the country.
“The government is pumping in RM100mil per year to maintain IWK operations but it is not run efficiently,” he said.
“Why must the Government waste taxpayers’ money when there are others in the industry who can do a better job?” asked Parameswaran who is the Gerakan environment, quality and health bureau head (specialised soil technology).

Parameswaran believed the problem at the Kuala Sawah plant could have been easily resolved if handled professionally.
In the case of Kuala Sawah, there was lack of communication and a management which did not know much about waste water business.
“The problem of finding a place to dispose of the sludge has led to other problems.
“The mechanical thickner is now jammed up due to accumulation of polymer and sludge,” he said, adding the thickner had to be cleaned every 13 hours or so using water jet equipment.
Overall IWK lacked technical personnel, Parameswaran said.

“They roped in people without know-how on waste water operations and most of its unit heads are non-technical people.”
He said what happened in Kuala Sawah would have gone unnoticed if not for the press highlighting it.
“I suggest the Government conduct an independent audit of its operations throughout the country,” he added.
Parameswaran said due to lack of proper maintenance IWK plants looked run down compared with similar plants in Japan and other developed countries.

He questioned why waste water was run as a separate entity.
“In most developed countries water and waste water are run as a single concept.
“I don’t know why they have to be separated and given to different companies,” he said.
He added that the best solution was to merge and let a water company take over because they had enough experience and could operate efficiently. - TheStar

IWK: Latest technology used to treat sludge

INDAH Water Konsotium (IWK) said its Kuala Sawah plant in Negri Sembilan is equipped with the latest technology to treat sludge to the required environmental standards.

IWK communications head Amin Lin Abdullah said the public sewerage facility at Kuala Sawah was one of the most modern in the country.

“There is no illegal dumping of sludge. The processed dry sludge was temporarily stored in a sewerage reserved land within the fenced area of the treatment plant and safely disposed of at approved landfill sites as cover material,” he said.

“The sewage treatment processes in all public sewerage facilities to prevent pollution are regulated by the Department of Environment and IWK’s sewerage services are regulated by the National Water Services Commission.

“We ensure that the public sewage treatment plants are operated and maintained efficiently every day to preserve the environment, safeguard the water resources and protect public health,” he said. - TheStar

IWK fined RM2,000 and ordered to clean up act

INDAH Water Konsortium (IWK) has been slapped on the wrist for illegally dumping sludge near its treatment plant in Kuala Sawah, about 10kms from Seremban town.
Negri Sembilan Department of Environment (DoE) director Charanpal Singh said IWK Kuala Sawah was fined RM2,000.

“We also ordered them to clean up their act,” he said, adding it was the first offence by IWK in the state.
He added that the 900 tonnes of sludge would be dumped at the Bukit Palong landfill in Lukut.
Asked if the small fine was effective in deterring industries from polluting the environment, Charanpal said the fine applied to unscheduled dumping of non-toxic waste.
“The law provides for a maximum fine of RM5,000 for major offences but this is not toxic waste,” he said.
Charanpal said DoE was yet to determine what caused the foul-up at the plant.

“Whatever it is they have cleaned up their act and DoE will be monitoring them,” he said.
On Tuesday, StarMetro reported that the bungle occurred at the plant due a mechanical malfunction.
Initially to prevent the massive overflow of sludge, the workers erected a barricade but it collapsed and started to spread to the surrounding areas.

The breakdown in communication, failure to identify a new dumping ground and lack of funds to buy diesel to operate a wheel loader were factors which were said to have contributed to the illegal dumping of wet sludge.
When villagers uncovered the incident in late February, IWK worked round the clock to undo the mess.
Private contractors were engaged to dig up and bury the wet sludge.

According to an internal report put together following the mess, IWK Kuala Sawah did not address the problem of lack of dumping ground after the South Waste Management (SWM) refused to allow all of Kuala Sawah sludge to be dumped at its site in Pagoh, Likut.
In the report, SWM detected high moisture content in the sludge and started limiting the number of lorries transporting sludge the dumping site. - TheStar

Choppy waters for bonds

AS the pressure of a deadlock in the restructuring of Selangor's water industry builds up by the day, its negative impact is also becoming more apparent.

On Wednesday, Malaysian Rating Corp (MARC) downgraded seven water sector-related bonds while RAM Ratings had also recently maintained its negative watch over several issuances.
It has been reported that the Federal Government is likely to step in to resolve potential financial fallouts as a result of possible defaults of the water bonds worth billions of ringgit.
The restructuring process in the state is part of a larger national initiative which is being spearheaded by a RM20bil Islamic debt programme by CIMB group.

The bondholders are no minnows and include some very big names in the financial industry.
“The latest development, referring to MARC's downgrades, further validates our view that renewed attempts to find closure to Selangor's water impasse remain challenging,” said AmResearch in a report on April 6.
Indeed, more than two years have passed and nothing substantial has come out of the various attempts to consolidate the water sector in the Pakatan Rakyat-controlled state.

The delay has largely been due to disagreements over who is the rightful party to consolidate the sector and have control over its operations.
Understandably, the bondholders are getting more nervous by the day as some of the bonds issued by the water companies for the restructuring process are near to defaulting because they (the companies) have not received payments from Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), the principal concessionaire in the state.
Syabas has not been able to pay because it did not get a 37% tariff hike which it was supposed to get two years ago as the Selangor government claimed that Syabas did not fulfil certain criteria for that hike.
In the middle of all this is Puncak Niaga Holdings Bhd, a listed company which has seen its stock price fall by more than 30% since two years ago.
Puncak, which is the core water company in Selangor and controls most companies including Syabas, is said to be linked closely to Barisan Nasional. Observers say this adds political complications to the restructuring process.

Puncak concluded its latest financial year ended Dec 31, 2010 on a low note, coming in at about 80% of analysts' expectations caused largely by increasing losses in subsidiaries as a result of the non-existent tariff hike.
“The deteriorating credit profile of Syabas, as the offtaker, is likely to affect that of Puncak Niaga, whose account receivables' levels are becoming unmanageable,” said MARC.
The prolonged deadlock in the restructuring of the Selangor water sector has raised questions regarding the state and the Federal Governments' stance toward providing timely financial support to the affected issuers, particularly given the approaching debt maturities for many of the rated issues over the coming months, the rating house said.

The initial plan was for the state's water assets to be consolidated by having them taken over by a unit of the Federal Government, which will streamline the entire industry in the process and lift the burden of heavy capital expenditure from the water players so that they can focus on the operations. However, this has yet to materialise.
The water sector in the state is by far the most fragmented in the country.
The main parties involved are the Federal Government, the state government and the water players with Puncak Niaga as the main company.- TheStar

Mustapa Regrets RM19 Million Has To Come From Federal Government Due AKSB's Failure

The failure of Air Kelantan Sdn Bhd (AKSB) to provide enough clean water supply in the state has forced the federal government to provide RM19 million this year to solve the problem, especially in the critical and rural areas.

Kelantan Development Action Council chairman Datuk Seri Mustapa Mohamed said the amount was channelled to the Kelantan Health Department.

He said the allocation should be for other development projects in the state, especially for building schools, but because of AKSB's failure it had to go to solving the clean water supply problem.

"This is only a temporary solution; the permanent solution should come from AKSB.

"We are unhappy about the problem and that the allocation cannot be used for other development purposes," he said after officiating at a dialogue session on health, here, Sunday.

Mustapa, who is International Trade and Industry Minister, said the council was listing again the critical areas in need of clean water supply according to priority.

In another development, Mustapa who is also Jeli Member of Parliament, said he was disappointed with the recent statement by Kelantan Menteri Besar Datuk Nik Abdul Aziz Nik Mat that Kelantan was free from any wrongdoings, including corruption.

Govt to defuse water-bond crisis

The Federal Government is looking to resolve any potential financial fallout posed by possible default in RM6.14bil worth of water-related bonds.
“The Government is hoping to settle all issues that are not just related to the water industry but also bondholders,'' Energy, Green Technology and Water Minister Datuk Seri Peter Chin told StarBiz.
According to Chin, the Cabinet is studying a proposal for this overall solution which involves restructuring talks with the Selangor government. Details would be revealed later.

“The Prime Minister, who is also the Finance Minister, is looking at it closely,'' Chin added.
The Finance Ministry in consultation with the Prime Minister's Department and related agencies is looking at various structures that may be drawn up to assist the financial markets and bondholders, many of which are financial institutions such as the Employees Provident Fund, which have invested heavily in these bonds.
The situation worsened yesterday with downgrades on seven of these bonds by Malaysian Rating Corp (MARC) while RAM Ratings had, two weeks ago, maintained negative watch over three issues of about RM2bil from Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash), Destinasi Teguh and Sungai Harmoni.

In its downgrades of the seven bonds with the exception of Viable Chips (M) Sdn Bhd's bank-guaranteed (BG) BaIDS, MARC referred to their “increasingly challenged liquidity positions'' arising from the unresolved deadlock in talks between the Selangor and Federal governments as well as water concessionaires on the restructuring of water assets in the state.

Amid concerns of an increased likelihood of missed payments as the maturities approached and weakened credit profiles, MARC believed that Puncak Niaga (M) Sdn Bhd (PNSB) and Puncak Niaga Holdings Bhd (PNHB) might “become more vulnerable to a possible declaration of an event-of-default due to minimum rating requirements imposed on the rated debt.''
This possible demand for repayment by bondholders will, in turn, increase the likelihood of cross-default and cross-acceleration, MARC said in a statement yesterday.

UiTM's Toilets To Use Rain Water In Future

Universiti Teknologi Mara (UiTM) will become the first university in the country to use treated rain water for toilets at its campuses.

For that purpose, UiTM will cooperate with the Drainage and Irrigation Department (JPS) through a memorandum of understanding (MoU) at the UiTM Puncak Alam campus here Wednesday.

UiTM Vice-Chancellor Prof Datuk Sahol Hamid Abu Bakar said the MoU would allow UiTM and JPS to use their individual expertise to turn natural waste into a usable source.

"Among our focus is to use treated rain water in toilets at all UiTM campuses within two to three more years," he told a news conference after the MoU was inked.

Sahol said research on the use of rain water was being carried out at the UiTM Puncak Alam campus here, which has a student capacity of 30,000 people, before it was extended to other UiTM campuses.- BERNAMA

Experts: Water issue needs thrashing out

As the population in Kuala Lumpur grows, there will inevitably be higher demand for water and the increase in the number of people will also lead to more waste being generated.

The need for improved sustainability has been highlighted by IBM and Siemens in their study on Kuala Lumpur's sustainability. There is currently a water impasse between the Selangor government and Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) . Syabas supplies water to Kuala Lumpur, Selangor and Putrajaya. The Government will intervene so that consumers will not be burdened by water issues, says Commissioner of the National Water Services Commission (Span) Roger Tan. Span, approved by Parliament in June 2006, came into force on Feb 1, 2007, to promote efficient water services management.

There is a prediction that there will be a major water shortage issue by 2014, which will affect the people in the city. There is an urgent need to replace leaky pipes to resolve the issue of water wastage. – AFP

 

“Before 2005, the state government has authority over water issues. After some amendments to the law, the state government has juridiction only over raw water, which is untreated water while water companies focus on water treatment and supply,” Tan says.
The second issue is wastage. It was highlighted about a couple of weeks ago that Malaysians use an average of 226 litres of water per person daily, which is way above Singaporeans (154 litres) and the Thais (90 litres). Low tariff has led to high consumption.
The third issue is non revenue water caused by pipe leakages and tampered meters. About 20% of water supplied in Kuala Lumpur is lost either through the leaking pipes or tampered meters, Tan says.

Roger Tan says Span is working to solve various issues so consumers do not become victims.

There is also a prediction that there will be a major water shortage issue by 2014, which will affect the people in the city. There is an urgent need to replace the leaking pipes to resolve the issue of water wastage.
“We are working to solve these various issues so consumers do not become victims. At the same time, there is a need for them to conserve water,” he says.