Kerajaan hari ini mengumumkan struktur tarif baru elektrik yang menyaksikan 75 peratus atau 4.4 juta daripada 5.94 juta pengguna domestik tidak akan mengalami kenaikan bil bulanan sekiranya mereka mengekalkan penggunaan elektrik pada 300 kilowatt sejam (kWj) atau kurang.
Kerajaan terus memberi bekalan elektrik percuma kepada pengguna yang bil elektriknya di bawah RM20. Kerajaan dijangka menanggung kos RM122 juta setahun untuk membiayai bekalan percuma ini.
Menteri Tenaga, Teknologi Hijau dan Air, Datuk Seri Peter Chin Fah Kui berkata, penyelarasan yang berkuat kuasa 1 Jun itu dilakukan selari dengan penyemakan semula harga gas untuk sektor elektrik di Semenanjung yang berkuat kuasa pada tarikh sama.
Menurut beliau, kerajaan menjangkakan kenaikan tarif elektrik akan memberi kesan minimum kepada kadar inflasi iaitu sebanyak 0.27 peratus.
Katanya, pihak yang menggunakan antara 301 hingga 1,000 kWj sebulan atau 23.5 peratus pengguna domestik pula mengalami kenaikan bil elektrik antara RM0.07 hingga RM30.30.
“Bagi pengguna komersial voltan rendah seperti restoran kecil yang penggunaannya tidak melebihi 200 kWj sebulan, kadar kenaikan maksimum adalah sebanyak 6.2 peratus atau RM4.60 sebulan.
“Pengguna industri voltan rendah termasuk pengusaha memproses makanan kecil-kecilan pula mengalami kenaikan tarif maksimum sebanyak 6.2 peratus atau RM4,” katanya pada sidang akhbar di sini, hari ini.
Beliau berkata, tarif industri khas yang ditawarkan kepada sektor industri yang perbelanjaan bil elektrik mereka melebihi lima peratus daripada kos operasi masih dikekalkan.
“Sektor industri yang layak akan terus menikmati kadar tarif yang rendah walaupun jurang perbezaannya dengan kadar industri biasa akan dikurangkan secara berperingkat selari dengan dasar kerajaan yang menggalakkan penggunaan tenaga secara cekap.
“Kerajaan akan memperkenalkan insentif tertentu dalam tempoh terdekat untuk menggalakkan pengguna membeli peralatan elektrik cekap tenaga,” katanya.
Berikut merupakan maklumat penstrukturan tarif elektrik yang diumumkan Peter Chin hari ini, iaitu:
* Kerajaan meluluskan permohonan Tenaga Nasional Berhad (TNB) untuk menaikkan tarif asas sebanyak dua peratus. Semakan diperlukan untuk menampung kos pembekalan elektrik semasa serta membolehkan TNB mempertingkatkan pelaburan dalam penyediaan infrastruktur yang lebih baik.
* Menaikkan kadar diskaun di luar waktu puncak bagi storan tenaga termal daripada 1.5 sen kWj kepada 3.5 sen kWj.
* Memberi diskaun sebanyak 10 peratus daripada kadar tarif biasa kepada institusi pendidikan yang dibiayai sebahagian oleh kerajaan seperti mana yang diberi kepada rumah ibadat dan institusi kebajikan.
* Syarikat rawatan dan pengagihan air serta pembentungan diletakkan di bawah kategori tarif industri.
* Mengekalkan tarif khas pertanian yang mula diperkenalkan pada tahun 2006.
* Kerajaan memutuskan agar kutipan tambahan satu peratus daripada bil bulanan disumbangkan kepada Dana Tenaga Boleh Baharu. Kutipan ini tidak termasuk pengguna yang menggunakan elektrik di bawah 300 kWj sebulan.
Tuesday, May 31, 2011
TheStar:Chin:Move will have minimal impact on inflation rate
The increase in electricity tariffs will have a minimal impact on the country's inflation rate which is projected to rise by 0.27%, said Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui.
“Low electricity users such as domestic or commercial users, including the cottage industry and food outlet operators, will not feel the pinch as “they do not use electricity to fry kuey teow or to fry rice,” he said at a joint press conference with Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop to announce the new tariffs for gas and electricity yesterday.
Nor Mohamed said the tariff increase would allow the country to manage its energy efficiently and avoid “misalignment of national resources”.
He added that despite the higher gas and electricity tariffs, Malaysians continued to enjoy a much lower rate of RM13.70 per million British thermal units (mmBtu) compared to regional consumers.
He said gas sold to the power sector in Thailand was RM18.23 per mmBtu, Indonesia (RM21.04 per mmBtu), Singapore (RM43.32 per mmBtu) and Vietnam (RM18.78 per mmBtu).
Nor Mohamed said although the gas prices would be reviewed every six months, a price increase would not be automatic, adding that Petronas had spent RM131.3bil to subsidise gas from 1997 to 2010.
“This year's subsidy payment is supposed to be RM27.22bil but with the revision, it is now down to RM25.64bil,” he said.
Nor Mohamed added that 36% of gas supplied by Petronas to its users was imported and the current market price was RM47.42 per mmBtu.
Chin said there would be no automatic increase in electricity tariff although the Government would review the price of gas every six months.
He said the Government had agreed on the principle of “fuel cost pass-through” where Petronas would forgo part of its revenue to enable the power sector to produce low-tariff electricity for the people.
“Even if there is a review for gas every six months, it does not mean electricity tariff will be automatically reviewed,” he added.
Chin dismissed claims that independent power producers (IPPs) received gas subsidies from the Government, saying the allegation was “totally untrue and baseless”.
“The Government has never provided any financial assistance to the IPPs so that they could reap higher profit as claimed by certain quarters.
“The so-called gas subsidy' is actually a certain amount of revenue forgone or released by Petronas in accordance with the Government's decision to fix gas prices for the power sector to have a low electricity tariff for the people,” he said.- THESTAR
“Low electricity users such as domestic or commercial users, including the cottage industry and food outlet operators, will not feel the pinch as “they do not use electricity to fry kuey teow or to fry rice,” he said at a joint press conference with Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop to announce the new tariffs for gas and electricity yesterday.
Nor Mohamed said the tariff increase would allow the country to manage its energy efficiently and avoid “misalignment of national resources”.
He added that despite the higher gas and electricity tariffs, Malaysians continued to enjoy a much lower rate of RM13.70 per million British thermal units (mmBtu) compared to regional consumers.
He said gas sold to the power sector in Thailand was RM18.23 per mmBtu, Indonesia (RM21.04 per mmBtu), Singapore (RM43.32 per mmBtu) and Vietnam (RM18.78 per mmBtu).
Nor Mohamed said although the gas prices would be reviewed every six months, a price increase would not be automatic, adding that Petronas had spent RM131.3bil to subsidise gas from 1997 to 2010.
“This year's subsidy payment is supposed to be RM27.22bil but with the revision, it is now down to RM25.64bil,” he said.
Nor Mohamed added that 36% of gas supplied by Petronas to its users was imported and the current market price was RM47.42 per mmBtu.
Chin said there would be no automatic increase in electricity tariff although the Government would review the price of gas every six months.
He said the Government had agreed on the principle of “fuel cost pass-through” where Petronas would forgo part of its revenue to enable the power sector to produce low-tariff electricity for the people.
“Even if there is a review for gas every six months, it does not mean electricity tariff will be automatically reviewed,” he added.
Chin dismissed claims that independent power producers (IPPs) received gas subsidies from the Government, saying the allegation was “totally untrue and baseless”.
“The Government has never provided any financial assistance to the IPPs so that they could reap higher profit as claimed by certain quarters.
“The so-called gas subsidy' is actually a certain amount of revenue forgone or released by Petronas in accordance with the Government's decision to fix gas prices for the power sector to have a low electricity tariff for the people,” he said.- THESTAR
Monday, May 30, 2011
Bernama:New RM1.2 Billion Dam To Be Built In Penang
The federal government will build a new dam besides enlarging the Mengkuang dam in Penang in a bid to increase water capacity in the state by 3.8 times.
State Barisan Nasional (BN) working committee chairman, Datuk Dr Teng Hock Nan, said the RM1.2 billion project would be implemented soon.
To this end, an agreement will be inked between Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui and Penang Chief Minister Lim Guan Eng in Putrajaya on Thursday.
Dr Teng said the deal showed that the federal government had not forsaken Penang although the BN was no longer at the helm.
"The project demonstrates that the BN federal government has not marginalised the state government led by the opposition pact, as claimed by Lim Guan Eng," he told reporters here Monday.
Dr Teng said that for the past 50 years, the BN government had been giving attention to the state's water supply needs, which included the construction of Air Itam, Teluk Bahang and Mengkuang dams.- BERNAMA
State Barisan Nasional (BN) working committee chairman, Datuk Dr Teng Hock Nan, said the RM1.2 billion project would be implemented soon.
To this end, an agreement will be inked between Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui and Penang Chief Minister Lim Guan Eng in Putrajaya on Thursday.
Dr Teng said the deal showed that the federal government had not forsaken Penang although the BN was no longer at the helm.
"The project demonstrates that the BN federal government has not marginalised the state government led by the opposition pact, as claimed by Lim Guan Eng," he told reporters here Monday.
Dr Teng said that for the past 50 years, the BN government had been giving attention to the state's water supply needs, which included the construction of Air Itam, Teluk Bahang and Mengkuang dams.- BERNAMA
HarianMetro:Punca hipertensi tidak diketahui
JAGA KESIHATAN...ramai yang tahu tekanan darah mereka dan bahaya hipertensi tetapi masih buat tidak endah.
SelangorKini:Kerajaan Pusat Tidak Bantu Selangor Percepat Selesai Isu Air
Tindakan kerajaan pusat menolak cadangan Kerajaan Selangor mengenai idea penstrukturan semula air di negeri ini menyukarkan penyelesaian proses itu dilakukan.
Hal ini kerana, tindakan kerajaan Pusat yang enggan menimbang sebaik mungkin tawaran yang diberikan kerajaan negeri yang menyebabkan isu ini masih berlarutan sehingga sekarang, kata ahli parlimen Klang, Charles Santiago.
” Apa yang lebih malang ialah, kerajaan Persekutuan pun tidak ada apa-apa cadangan yang baru, pandangan mereka ialah untuk tidak lakukan apa-apa perubahan mengenai cara untuk menguruskan, yang pasti mereka takut untuk cakap dengan terus terang, oleh kerana itu apa-apa cadangan yang dibentangkan kerajaan negeri ditolak dalam mesyuarat,” kata Charles.
Media hari ini melaporkan Menteri Tenaga, Teknologi Hijau dan Air, Datuk Peter Chin Fah Kui berkata, kerajaan Selangor gagal menyusun langkah sesuai untuk mengatasi masalah ini sehingga mengakibatkan kerajaan Pusat terpaksa masuk campur.
Bagaimanapun, menurut Charles, kenyataan menteri itu amat tidak bertanggungjawab memandangkan umum mengetahui kerajaan negeri beberapa kali membentangkan tawaran kepada empat syarikat konsesi di negeri ini namun “diganggu” oleh kerajaan Pusat.
“Apa yang dikatakan oleh Datuk Peter itu memang tidak patut dan tidak bertanggungjawab sebab kita telah lakukan banyak cadangan tetapi ditolak dan perkara ini membuatkan ia berlarutan dalam jangka masa yang lama,”katanya.
Charles menyatakan kerajaan Selangor menyedari kebimbangan pemegang- pemegang bon air susulan laporan bahawa bon mungkin menghadapi penurunan rating sekiranya perbincangan penyusunan semula industri air tidak diselesaikan.
Bagaimanapun, Menteri Besar Selangor Tan Sri Abdul Khalid Ibrahim yakin dapat menyelesaikan isu dengan kerajaan Persekutuan bagi menyusun semula perkhidmatan air seperti yang diperuntukkan bawah Akta Industri Perkhidmatan Air 2006 (WSIA).
Malangnya, kerajaan Pusat pula tekad mengambil alih bon air dari kerajaan Selangor atas alasan menstabilkan industri air Selangor.
Justeru menurut Charles, Selangor perlu diberi hak dan ruang dalam menyelesaikan masalah ini.
“Kalau Peter Chin tidak mampu uruskan biar kerajaan negeri uruskan, dan kini dia bagi pembelaan kepada pemegang bon dan jelas tindakan ini tidak masuk akal, ini menunjukkan keadaan sedia ada iaitu menggunakan pihak swasta menguruskan air (yang terbukti) telah gagal,”katanya lagi.
DAP hari ini mendedahkan, kerajaan membayar 73% lebih tinggi daripada nilai pasaran walaupun sepatutnya baki bon tersebut harus diselesaikan oleh pemegang saham syarikat terbabit.
Untuk rekod, kerajaan Persekutuan telah memberi lampu hijau kepada Kerajaan Selangor pada Januari 2008 untuk menyatukan pemegang konsesi air ini di bawah syarikat milik penuh Kerajaan Selangor, Kumpulan Darul Ehsan Berhad (KDEB).
Selepas Pakatan Rakyat memerintah pada Mac 2008, Menteri Besar memutuskan untuk menstruktur semula industri air dengan menawarkan pampasan kepada pemegang konsesi sebanyak RM5.7 billion.
Pemegang konsesi menolak tawaran ini kerana mendakwa jumlahnya tidak cukup untuk menampung hutang-hutang yang ditanggung syarikat konsesi yang berjumlah RM6.4 billion.
Selepas semakan semula empat bulan kemudian, Kerajaan Selangor menawarkan pampasan sebanyak RM9.3 billion dan tawaran ini diterima konsesi SPLASH dan ABBAS.
Pada Mac 2010, kerajaan persekutuan membuat tawaran kepada pemegang konsesi berjumlah RM10.3 billion tetapi ditolak oleh Puncak Niaga Sdn Bhd (PNSB) dan Syarikat Bekalan Air Selangor Sdn Bhd (SYABAS).
Pada Januari 2011, Kerajaan Selangor sekali lagi membuat tawaran pengambilalihan termasuk menawarkan arbitrasi antarabangsa (International Arbitration) dalam memastikan pengambilalihan dilaksanakan dengan integriti dan adil kepada semua pemegang konsesi.- SELANGORKINI
Hal ini kerana, tindakan kerajaan Pusat yang enggan menimbang sebaik mungkin tawaran yang diberikan kerajaan negeri yang menyebabkan isu ini masih berlarutan sehingga sekarang, kata ahli parlimen Klang, Charles Santiago.
” Apa yang lebih malang ialah, kerajaan Persekutuan pun tidak ada apa-apa cadangan yang baru, pandangan mereka ialah untuk tidak lakukan apa-apa perubahan mengenai cara untuk menguruskan, yang pasti mereka takut untuk cakap dengan terus terang, oleh kerana itu apa-apa cadangan yang dibentangkan kerajaan negeri ditolak dalam mesyuarat,” kata Charles.
Media hari ini melaporkan Menteri Tenaga, Teknologi Hijau dan Air, Datuk Peter Chin Fah Kui berkata, kerajaan Selangor gagal menyusun langkah sesuai untuk mengatasi masalah ini sehingga mengakibatkan kerajaan Pusat terpaksa masuk campur.
Bagaimanapun, menurut Charles, kenyataan menteri itu amat tidak bertanggungjawab memandangkan umum mengetahui kerajaan negeri beberapa kali membentangkan tawaran kepada empat syarikat konsesi di negeri ini namun “diganggu” oleh kerajaan Pusat.
“Apa yang dikatakan oleh Datuk Peter itu memang tidak patut dan tidak bertanggungjawab sebab kita telah lakukan banyak cadangan tetapi ditolak dan perkara ini membuatkan ia berlarutan dalam jangka masa yang lama,”katanya.
Charles menyatakan kerajaan Selangor menyedari kebimbangan pemegang- pemegang bon air susulan laporan bahawa bon mungkin menghadapi penurunan rating sekiranya perbincangan penyusunan semula industri air tidak diselesaikan.
Bagaimanapun, Menteri Besar Selangor Tan Sri Abdul Khalid Ibrahim yakin dapat menyelesaikan isu dengan kerajaan Persekutuan bagi menyusun semula perkhidmatan air seperti yang diperuntukkan bawah Akta Industri Perkhidmatan Air 2006 (WSIA).
Malangnya, kerajaan Pusat pula tekad mengambil alih bon air dari kerajaan Selangor atas alasan menstabilkan industri air Selangor.
Justeru menurut Charles, Selangor perlu diberi hak dan ruang dalam menyelesaikan masalah ini.
“Kalau Peter Chin tidak mampu uruskan biar kerajaan negeri uruskan, dan kini dia bagi pembelaan kepada pemegang bon dan jelas tindakan ini tidak masuk akal, ini menunjukkan keadaan sedia ada iaitu menggunakan pihak swasta menguruskan air (yang terbukti) telah gagal,”katanya lagi.
DAP hari ini mendedahkan, kerajaan membayar 73% lebih tinggi daripada nilai pasaran walaupun sepatutnya baki bon tersebut harus diselesaikan oleh pemegang saham syarikat terbabit.
Untuk rekod, kerajaan Persekutuan telah memberi lampu hijau kepada Kerajaan Selangor pada Januari 2008 untuk menyatukan pemegang konsesi air ini di bawah syarikat milik penuh Kerajaan Selangor, Kumpulan Darul Ehsan Berhad (KDEB).
Selepas Pakatan Rakyat memerintah pada Mac 2008, Menteri Besar memutuskan untuk menstruktur semula industri air dengan menawarkan pampasan kepada pemegang konsesi sebanyak RM5.7 billion.
Pemegang konsesi menolak tawaran ini kerana mendakwa jumlahnya tidak cukup untuk menampung hutang-hutang yang ditanggung syarikat konsesi yang berjumlah RM6.4 billion.
Selepas semakan semula empat bulan kemudian, Kerajaan Selangor menawarkan pampasan sebanyak RM9.3 billion dan tawaran ini diterima konsesi SPLASH dan ABBAS.
Pada Mac 2010, kerajaan persekutuan membuat tawaran kepada pemegang konsesi berjumlah RM10.3 billion tetapi ditolak oleh Puncak Niaga Sdn Bhd (PNSB) dan Syarikat Bekalan Air Selangor Sdn Bhd (SYABAS).
Pada Januari 2011, Kerajaan Selangor sekali lagi membuat tawaran pengambilalihan termasuk menawarkan arbitrasi antarabangsa (International Arbitration) dalam memastikan pengambilalihan dilaksanakan dengan integriti dan adil kepada semua pemegang konsesi.- SELANGORKINI
Selangor Water Bonds BAILOUT Is Not In Line With WSIA Model
Association of Water and Energy Research Malaysia (AWER) objects this irresponsible move by Pengurusan Aset Air Berhad (PAAB) and Ministry of Energy, Green Technology and Water (KeTTHA) to Bailout Water Bonds which worth RM 6.5 Billion. This move is not in line with Water Services Industry Act 2006 (WSIA) and its implementation as it does not outline the fate of Concession Holders.
AWER would like to cite the General Motor and Chrysler bailout by US Treasury in 2009 as example. The US Treasury and few others took control of the stake in these companies in the bailout. The move was to ensure the companies do not collapse and prevent loss of livelihood of many. While the move by KeTTHA and PAAB was seen as a step to prevent deterioration of financial market confidence towards Malaysia, the solution is still not in line with WSIA.
The Selangor Water Bonds bailout via PAAB is not anywhere near to the US example. In actual operation, PAAB is already a Special Purpose Vehicle (SPV) and there will be no need to form a new SPV as another middle man. Introducing a new middle man will incur additional cost to public unnecessarily. The very duty of PAAB is to take over assets with liabilities to ensure the water operators are asset-light. PAAB’s operations are supposed to be ring-fenced and regulated by Suruhanjaya Perkhidmatan Air Negara (SPAN). What has gone wrong here? Is PAAB not clear or do not understand their role and job scope?
In the bailout of General Motor and Chrysler, the US Treasury and few others took control of the stake in the companies. Unfortunately, the proposed action by PAAB is just saving the bondholders without relinquishing the stakes of affected concession agreement holders. This should not be the way SPAN, PAAB and KeTTHA end the water bonds’ issue. This is equivalent to passing the entire problem straight to the people and businesses to pay off. After all, all these costs are paid through tariff.
The bondholders are actually stuck in this situation due to tussle between state government and the concession holders as well as federal government. The WSIA model allows the removal of concession agreements via a proper mechanism. Paying off liabilities of the concession companies to prevent deterioration of market confidence is acceptable. But, CONCESSION AGREEMENT MUST BE MADE NULL AND VOID at the end of the whole deal.
Once the proposed bailout is done and PAAB takes control of the relevant stakes, an agreement can be made directly with state government to restructure the Selangor state water industry by Federal Government without the need to involve affected concession holders.
AWER urges Selangor State Government and KeTTHA to cooperate to solve this issue. For those whom are not clear on how WSIA model functions, please log on to www.awer.org.my to download this report National Water Services Industry Restructuring – The Truth. It is in Bahasa Malaysia and English. This report was also sent to all ADUNs and MPs in Malaysia last month.
S. Piarapakaran , President, Association of Water and Energy Research Malaysia (AWER)
AWER would like to cite the General Motor and Chrysler bailout by US Treasury in 2009 as example. The US Treasury and few others took control of the stake in these companies in the bailout. The move was to ensure the companies do not collapse and prevent loss of livelihood of many. While the move by KeTTHA and PAAB was seen as a step to prevent deterioration of financial market confidence towards Malaysia, the solution is still not in line with WSIA.
The Selangor Water Bonds bailout via PAAB is not anywhere near to the US example. In actual operation, PAAB is already a Special Purpose Vehicle (SPV) and there will be no need to form a new SPV as another middle man. Introducing a new middle man will incur additional cost to public unnecessarily. The very duty of PAAB is to take over assets with liabilities to ensure the water operators are asset-light. PAAB’s operations are supposed to be ring-fenced and regulated by Suruhanjaya Perkhidmatan Air Negara (SPAN). What has gone wrong here? Is PAAB not clear or do not understand their role and job scope?
In the bailout of General Motor and Chrysler, the US Treasury and few others took control of the stake in the companies. Unfortunately, the proposed action by PAAB is just saving the bondholders without relinquishing the stakes of affected concession agreement holders. This should not be the way SPAN, PAAB and KeTTHA end the water bonds’ issue. This is equivalent to passing the entire problem straight to the people and businesses to pay off. After all, all these costs are paid through tariff.
The bondholders are actually stuck in this situation due to tussle between state government and the concession holders as well as federal government. The WSIA model allows the removal of concession agreements via a proper mechanism. Paying off liabilities of the concession companies to prevent deterioration of market confidence is acceptable. But, CONCESSION AGREEMENT MUST BE MADE NULL AND VOID at the end of the whole deal.
Once the proposed bailout is done and PAAB takes control of the relevant stakes, an agreement can be made directly with state government to restructure the Selangor state water industry by Federal Government without the need to involve affected concession holders.
AWER urges Selangor State Government and KeTTHA to cooperate to solve this issue. For those whom are not clear on how WSIA model functions, please log on to www.awer.org.my to download this report National Water Services Industry Restructuring – The Truth. It is in Bahasa Malaysia and English. This report was also sent to all ADUNs and MPs in Malaysia last month.
S. Piarapakaran , President, Association of Water and Energy Research Malaysia (AWER)
AWER: Cancel Selangor water concessions after bailout
Putrajaya should void Selangor water players’ concessions upon completion of its RM6.5 billion “bailout” so that consumers will not have to foot the bill, the Association of Water and Energy Research Malaysia (AWER) has said.
“This is equivalent to passing the entire problem straight to the people and businesses to pay off,” AWER president S. Piarapakaran said in a statement today.
“After all, all these costs are paid through tariff.”
Piarapakaran said that, while it was acceptable for government to pay off concessionaires’ liabilities to prevent a drop in market confidence, the Water Asset Management Company (PAAB) should take a stake in the four water companies through the bonds buyback.
Once the bailout was completed, PAAB could then make an agreement directly with the Selangor government to restructure the state’s water industry without the need to involve concession holders, he said.
“Unfortunately, the proposed action by PAAB is just saving the bondholders without relinquishing the stakes of affected concession agreement holders,” he said.
Piarapakaran also pointed out that the proposal by the National Water Services Commission (Span), PAAB and the Energy, Green Technology and Water Ministry (Kettha) was not only “irresponsible” but went against the restructuring plan laid out in the Water Services Industry Act (WSIA) 2006.
“The WSIA model allows the removal of concession agreements via a proper mechanism... But (the) concession agreement must be made null and void at the end of the whole deal,” he said.
He added that since PAAB was already a special purpose vehicle (SPV), it made no sense incur additional costs through “middle man” Acqua SPV Bhd, a wholly-owned subsidiary of PAAB that was formed to buy back the bonds.
“The very duty of PAAB is to take over assets with liabilities to ensure the water operators are ‘asset-light’,” Piarapakaran said.-MALAYSIANINSIDER
“This is equivalent to passing the entire problem straight to the people and businesses to pay off,” AWER president S. Piarapakaran said in a statement today.
“After all, all these costs are paid through tariff.”
Piarapakaran said that, while it was acceptable for government to pay off concessionaires’ liabilities to prevent a drop in market confidence, the Water Asset Management Company (PAAB) should take a stake in the four water companies through the bonds buyback.
Once the bailout was completed, PAAB could then make an agreement directly with the Selangor government to restructure the state’s water industry without the need to involve concession holders, he said.
“Unfortunately, the proposed action by PAAB is just saving the bondholders without relinquishing the stakes of affected concession agreement holders,” he said.
Piarapakaran also pointed out that the proposal by the National Water Services Commission (Span), PAAB and the Energy, Green Technology and Water Ministry (Kettha) was not only “irresponsible” but went against the restructuring plan laid out in the Water Services Industry Act (WSIA) 2006.
“The WSIA model allows the removal of concession agreements via a proper mechanism... But (the) concession agreement must be made null and void at the end of the whole deal,” he said.
He added that since PAAB was already a special purpose vehicle (SPV), it made no sense incur additional costs through “middle man” Acqua SPV Bhd, a wholly-owned subsidiary of PAAB that was formed to buy back the bonds.
“The very duty of PAAB is to take over assets with liabilities to ensure the water operators are ‘asset-light’,” Piarapakaran said.-MALAYSIANINSIDER
Pantai sewage upgrade: MP unsatisfied with minister’s answer
Lembah Pantai MP Nurul Izzah says minister Peter Chin was only sidestepping the queries she had raised and wants him to be transparent.
MALACCA: PKR vice-president Nurul Izzah Anwar has accused Energy, Green Technology and Water Minister Peter Chin Fah Kui of being evasive over his answers on the Pantai 2 sewage treatment plant upgrade project.“Again, I ask the minister to reveal the documents that detail the exact amount and why was a particular company chosen,” said Nurul, who questioned why Chin had refused to reveal which company had received the contract.
“Clearly, he has not taken the ‘transparent’ route to allay any concerns of ‘direct tender’ and over expenditure in this case,” she said.
Nurul was responding to Chin’s comments to dismiss claims that the cost to upgrade the sewage treatment plant in Pantai in Lembah Pantai has doubled. This claim was originally made by Nurul earlier this week. The plant sits in her constituency.
Chin had earlier brushed off Nurul’s claim that the project has ballooned from RM500 million to RM1 billion. He said that Nurul was merely speculating.
Chin had said:”I don’t know where she got the information from on the value of the project… the RM500 million, that is her figure. We have not issued anything on this. It is only her speculation
“Yes, you say its my speculation, but are you saying its untrue? The minister should be a little more transparent with his answers,” Nurul retorted.
Nurul had alleged that the upgrading project was riddled with discrepancies, including the 100% increase above supposed market value. She had also alleged that the contract was awarded via direct negotiations
The government was said to be in the final stages of awarding the job “to a contractor”.
Government Will Study First NEC's Report On Electricity Tariff, Says Najib
Prime Minister Datuk Seri Mohd Najib Tun Razak said the government will study first the report submitted by the National Economic Council (NEC) on the electricity tariff.
"Whatever it is, we will see first. We cannot say anything. That is their report," he told a press conference after chairing the Umno Supreme Council meeting here Friday.
The prime minister said this when asked on whether the NEC had approved a rise in the electricity tariff.
Reasserting the government's stand on subsidisation and its effects on the rakyat, he said: "I have explained our policy but many people still are not very clear.
"This is not about reducing the subsidies but rather the reduction in the increase of subsidisation."
Subsidies will not only continue to be given but infact have increased from RM11 billion to RM20 billion.
"The government therefore has to source for another RM8 billion, which is not a small amount," he explained.
Earlier today, the Ministry of Energy, Green Technology and Water released a statement saying that the National Economic Council (NEC) had discussed the issue of the review on the price of gas and electricity tariff at its meeting today.
The ministry added that the matter was still under scrutiny and an announcement on the matter will be made in the near future.-- BERNAMA
"Whatever it is, we will see first. We cannot say anything. That is their report," he told a press conference after chairing the Umno Supreme Council meeting here Friday.
The prime minister said this when asked on whether the NEC had approved a rise in the electricity tariff.
Reasserting the government's stand on subsidisation and its effects on the rakyat, he said: "I have explained our policy but many people still are not very clear.
"This is not about reducing the subsidies but rather the reduction in the increase of subsidisation."
Subsidies will not only continue to be given but infact have increased from RM11 billion to RM20 billion.
"The government therefore has to source for another RM8 billion, which is not a small amount," he explained.
Earlier today, the Ministry of Energy, Green Technology and Water released a statement saying that the National Economic Council (NEC) had discussed the issue of the review on the price of gas and electricity tariff at its meeting today.
The ministry added that the matter was still under scrutiny and an announcement on the matter will be made in the near future.-- BERNAMA
Syabas To Exempt Poor Families From Paying Bill
The Selangor water supply company SYABAS is to exempt poor families from paying their water bills for a year, its executive chairman, Tan Sri Rozali Ismail, said on Sunday.
He said that SYABAS staff would make a survey to find out who should be given the exemption, regardless of ethnic background.
"Lower income families with many children to support will be given priority in the provision of free water," he told reporters here.
He said that SYABAS, which supplies water to Selangor, Kuala Lumpur and Putrajaya, would review the situation next year.
Rozali said: "We had at times cut water supply to people whom we thought just did not want to pay their bills. But cutting the supply to poor families, people who have a lot of children to support or who are jobless would mean causing them further hardship."
He said that SYABAS would monitor the situation to make sure that only users who did not pay their bills when they could afford to do so had their water supply cut.
Rozali urged families given the exemption not to waste water.-- BERNAMA
He said that SYABAS staff would make a survey to find out who should be given the exemption, regardless of ethnic background.
"Lower income families with many children to support will be given priority in the provision of free water," he told reporters here.
He said that SYABAS, which supplies water to Selangor, Kuala Lumpur and Putrajaya, would review the situation next year.
Rozali said: "We had at times cut water supply to people whom we thought just did not want to pay their bills. But cutting the supply to poor families, people who have a lot of children to support or who are jobless would mean causing them further hardship."
He said that SYABAS would monitor the situation to make sure that only users who did not pay their bills when they could afford to do so had their water supply cut.
Rozali urged families given the exemption not to waste water.-- BERNAMA
Satu Loses RM18 Million Due To Leakage, Broken Pipes
Leakage and damaged pipes result in Syarikat Air Terengganu Sdn Bhd (SATU) suffering losses amounting to about RM18 million a year in revenue.
State Infrastructure and Public Amenities Development Committee chairman Datuk Zaabar Mohd Adib said the problem of damaged and leaking pipes was caused by worn out or old pipes.
"To overcome the problem, SATU has set up a special squad to monitor areas that are prone to such occurrence. We also urge consumers to help SATU by reporting any leakage or broken pipes.
"With such initiatives in place, we hope to reduce losses from non-revenue water from 39 percent to 35 percent this year," he told reporters after opening SATU's open day here Sunday.
Zaabar said SATU supplied 97 percent of the clean treated water to 283,000 consumers through supply from its 14 water treatment plants at a cost of 52 sen per cubic litre although the cost of processing per cubic litre of water costs 59 sen.
"Our tariff is very low compared with the cost of processing water and it is about time to review the current tariff to avert further losses," he said.
-- BERNAMA
State Infrastructure and Public Amenities Development Committee chairman Datuk Zaabar Mohd Adib said the problem of damaged and leaking pipes was caused by worn out or old pipes.
"To overcome the problem, SATU has set up a special squad to monitor areas that are prone to such occurrence. We also urge consumers to help SATU by reporting any leakage or broken pipes.
"With such initiatives in place, we hope to reduce losses from non-revenue water from 39 percent to 35 percent this year," he told reporters after opening SATU's open day here Sunday.
Zaabar said SATU supplied 97 percent of the clean treated water to 283,000 consumers through supply from its 14 water treatment plants at a cost of 52 sen per cubic litre although the cost of processing per cubic litre of water costs 59 sen.
"Our tariff is very low compared with the cost of processing water and it is about time to review the current tariff to avert further losses," he said.
-- BERNAMA
Friday, May 27, 2011
National Economic Council To Decide On Electricity Tariffs Revision
The National Economic Council (NEC) will decide if there is to be any revision to the electricity tariffs, said Minister of Energy, Green Technology and Water, Datuk Seri Peter Chin Fah Kui.
He said a NEC meeting to be held in Putrajaya tomorrow will be chaired by Prime Minister Datuk Seri Najib Tun Razak.
"The Cabinet has decided that the Economic Council will make the final decision.
"It (the economic council) will determine if we finally introduce the new electricity tariffs," he told reporters here, Thursday.
He was speaking after launching the "Dare To Dream Challenge" in conjunction with the 2nd International Greentech & Eco Products Exhibition & Conference Malaysia 2011 (IGEM 2011), at the Limkokwing University of Creative Technology, here.
Commenting on an allegation that the cost to upgrade the Pantai 2 Sewage Treatment Plant had doubled to RM1 billion, Chin said details of the project are still being discussed.
"It is a government-to-government project and is still being discussed with the Chinese government," he said.
Meanwhile, Chin said the Dare to Dream Challenge is being held in conjunction with IGEM 2011 from Sept 7-10 at the Kuala Lumpur Convention Centre (KLCC).
He said its main objective is to raise awareness of green technology and eco-products by show-casing innovative design solutions, as well as engage and promote talented designers and idea generators in the creation of a better tomorrow through green technology while promoting the green agenda.
"The Dare to Dream competition is a platform that can capture the imagination of youths and promote their problem solving skills, as it allows for the fusion of fantasies and reality in a creative challenge to highlight on current issues," he said.-- BERNAMA
He said a NEC meeting to be held in Putrajaya tomorrow will be chaired by Prime Minister Datuk Seri Najib Tun Razak.
"The Cabinet has decided that the Economic Council will make the final decision.
"It (the economic council) will determine if we finally introduce the new electricity tariffs," he told reporters here, Thursday.
He was speaking after launching the "Dare To Dream Challenge" in conjunction with the 2nd International Greentech & Eco Products Exhibition & Conference Malaysia 2011 (IGEM 2011), at the Limkokwing University of Creative Technology, here.
Commenting on an allegation that the cost to upgrade the Pantai 2 Sewage Treatment Plant had doubled to RM1 billion, Chin said details of the project are still being discussed.
"It is a government-to-government project and is still being discussed with the Chinese government," he said.
Meanwhile, Chin said the Dare to Dream Challenge is being held in conjunction with IGEM 2011 from Sept 7-10 at the Kuala Lumpur Convention Centre (KLCC).
He said its main objective is to raise awareness of green technology and eco-products by show-casing innovative design solutions, as well as engage and promote talented designers and idea generators in the creation of a better tomorrow through green technology while promoting the green agenda.
"The Dare to Dream competition is a platform that can capture the imagination of youths and promote their problem solving skills, as it allows for the fusion of fantasies and reality in a creative challenge to highlight on current issues," he said.-- BERNAMA
Federal Government Welcomes Proposed Talks On Selangor Water Issue
The federal government Thursday welcomed the Selangor government proposal for talks to resolve the restructuring of the water supply service in the state.
The Minister of Energy, Green Technology and Water, Datuk Seri Peter Chin Fah Kui, said the federal government was also prepared to study the proposal for the takeover of the Selangor water bonds.
"I wish to clarify that the proposed takeover is a mitigation measure to stabilise the water supply service in Selangor and prevent this crisis from affecting national financial market confidence," he said in a statement.
Chin said the federal government was confident that the takeover could stabilise the water supply industry in the state.
"This situation would enable the federal government to focus on restructuring the industry and continue negotiations with the state government without having to worry about bond-related issues," Chin said.-- BERNAMA
The Minister of Energy, Green Technology and Water, Datuk Seri Peter Chin Fah Kui, said the federal government was also prepared to study the proposal for the takeover of the Selangor water bonds.
"I wish to clarify that the proposed takeover is a mitigation measure to stabilise the water supply service in Selangor and prevent this crisis from affecting national financial market confidence," he said in a statement.
Chin said the federal government was confident that the takeover could stabilise the water supply industry in the state.
"This situation would enable the federal government to focus on restructuring the industry and continue negotiations with the state government without having to worry about bond-related issues," Chin said.-- BERNAMA
Thursday, May 26, 2011
PAAB to acquire water bonds
The Selangor water impasse appears to have finally been broken. Syarikat Pengurusan Aset Air Bhd (PAAB) will acquire the securities issued by the Selangor state water concessionaires through its-wholly owned subsidiary Acqua SPV Bhd.
The conditional offer amounting to RM6.5 billion, which expires on May 31, would see Acqua SPV paying the settlement value for the securities based on the purchase yield to maturity, according to sources familiar with the matter.
This latest development confirms a front page story in The Edge Financial Daily on May 12, 2011 that the federal government and PAAB were said to have finalised a RM6.5 billion proposal to take over the Selangor state’s water-related bonds, and that an offer was likely to be made within two weeks.
It is learnt that Acqua SPV is offering a yield of between 4.83% and 7.36% for the remaining tranches of bonds maturing in 2013 to 2023.
“The yield price offered basically allows most bondholders to get out with a profit.
“For the 2021 paper, the buyback yield is at 5.82% against mark to market at the end of last month at 14.2%. This means that in terms of price, the buying back is at 94.49 against mark to market value of only 54.54 at the end of last month,” said a source.
The bondholders are understood to include Great Eastern Life Assurance (M) Bhd, CIMB Group Holdings Bhd, the Employees Provident Fund (EPF) and Kumpulan Wang Amanah Pencen.
Among the water players in Selangor is Puncak Niaga Holdings Bhd, which has two concessions — Puncak Niaga (M) Sdn Bhd, a treatment player and its 70%-owned unit Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), a distributor. Puncak Niaga is controlled by Tan Sri Rozali Ismail.
Another company which has a water treatment concession is Syarikat Pengeluar Air Sungai Selangor Holdings Bhd (Splash), which is 40%-controlled by construction giant Gamuda Bhd, and 30% each by Kumpulan Perangsang Selangor Bhd (KPS) and Tan Sri Wan Azmi Wan Hamzah’s The Sweet Water Alliance Sdn Bhd. KPS is 60.7%-controlled by Kumpulan Darul Ehsan Bhd, the Selangor state investment arm.
The other water treatment concessionaire is Konsortium Abass Sdn Bhd, which is 55%-controlled by KPS and 45% by Operasi Murni Sdn Bhd.
An analyst said the government’s takeover of the bonds was imminent since there are repayments due in the next couple of months.
He said the RM6.5 billion offer from the federal government, after a RM200 million discount, will be spread out among the bondholders.
“But the interesting part is the equity side. This remains to be seen. The bond issues can be solved but the equity is another ball game. The bottom line is both the Selangor and federal governments want control. They want to champion cheap water.
“In this instance, the state government also has a stake in the water supply chain,” he said.
The analyst also said there was a disconnect between the federal government and the state government where the valuation of physical assets is concerned. The state owns about 80% of the physical assets such as pipes and water treatment plants.
“PAAB will still have to pay for these assets ultimately,” he added.
A bondholder said the acquisition was expected as it is in line with the consolidation of the water industry to ensure the sustainability of investor confidence for infrastructure and utility projects in Malaysia.
“The acquisition will simplify the credit risk of what was previously a fragmented and complicated group of utility bonds, which were built on a web of SPVs (special-purpose vehicles” he said.
Asked if the RM6.5 billion figure that has been bandied about was a fair number for the bondholders, he replied: “At the end of the day, the acquisition monies required would at least closely reflect the bonds’ outstanding nominal value.
“However, from an investor’s standpoint, a more holistic approach to overall returns should be addressed. For example, much management time was wasted during lengthy and numerous meetings in the initial stages of the water bonds’ financial distress, and [this] does not compensate investors for lowered yields and stretched payback periods after the acquisition.”
On Monday, Energy, Water and Green Technologies Minister Datuk Seri Peter Chin Fah Kui said the Cabinet would decide on the acquisition of the Selangor water bonds but to date there is no Cabinet paper on the matter.
“It is for the Cabinet to decide. The paper has not gone in yet. Wait for the paper to be submitted to the Cabinet,” Chin told the media when asked if the federal government would take over the water bonds.
Petaling Jaya Utara MP Tony Pua meanwhile, said in a statement any move by the government to bail out the debts of the privatised Selangor water companies has in effect killed any remaining possibility of the state government striking a deal with the companies to restructure and take over the water industry in Selangor.
Pua said had there been no bailout offered by the federal government, the companies would have to negotiate the terms of restructuring with the state government or other parties that have made offers to acquire the businesses and assets.
The Selangor government had made several offers to acquire the water companies. In January, it made an offer of more than RM9 billion for the water assets. Prior to that, in April last year, Gamuda made a RM10.75 billion offer to take over the water assets in Selangor. A month earlier, the federal government via PAAB made an offer to acquire all the water assets from the concessionaires for RM8.3 billion.
“However, as a result of the federal government bailing out the massive debts, it has relieved these companies of their cash flow problems. This will mean that there is now no urgency for these companies to agree to any form of restructuring as desired under the Water Services Industry Act (2006) as they now have the upper hand at the negotiating table at the expense of the rakyat.
“In fact, the likely outcome of the bailout is that the federal government will follow up with the taking over of the water-related assets. The privatised water concessionaires will continue to operate and profit from the provision of water services in Selangor, without being burdened by debts,” said Pua, adding that Chin ought to clarify the move for the bailout.- THEEDGE
The conditional offer amounting to RM6.5 billion, which expires on May 31, would see Acqua SPV paying the settlement value for the securities based on the purchase yield to maturity, according to sources familiar with the matter.
This latest development confirms a front page story in The Edge Financial Daily on May 12, 2011 that the federal government and PAAB were said to have finalised a RM6.5 billion proposal to take over the Selangor state’s water-related bonds, and that an offer was likely to be made within two weeks.
It is learnt that Acqua SPV is offering a yield of between 4.83% and 7.36% for the remaining tranches of bonds maturing in 2013 to 2023.
“The yield price offered basically allows most bondholders to get out with a profit.
“For the 2021 paper, the buyback yield is at 5.82% against mark to market at the end of last month at 14.2%. This means that in terms of price, the buying back is at 94.49 against mark to market value of only 54.54 at the end of last month,” said a source.
The bondholders are understood to include Great Eastern Life Assurance (M) Bhd, CIMB Group Holdings Bhd, the Employees Provident Fund (EPF) and Kumpulan Wang Amanah Pencen.
Among the water players in Selangor is Puncak Niaga Holdings Bhd, which has two concessions — Puncak Niaga (M) Sdn Bhd, a treatment player and its 70%-owned unit Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), a distributor. Puncak Niaga is controlled by Tan Sri Rozali Ismail.
Another company which has a water treatment concession is Syarikat Pengeluar Air Sungai Selangor Holdings Bhd (Splash), which is 40%-controlled by construction giant Gamuda Bhd, and 30% each by Kumpulan Perangsang Selangor Bhd (KPS) and Tan Sri Wan Azmi Wan Hamzah’s The Sweet Water Alliance Sdn Bhd. KPS is 60.7%-controlled by Kumpulan Darul Ehsan Bhd, the Selangor state investment arm.
The other water treatment concessionaire is Konsortium Abass Sdn Bhd, which is 55%-controlled by KPS and 45% by Operasi Murni Sdn Bhd.
An analyst said the government’s takeover of the bonds was imminent since there are repayments due in the next couple of months.
He said the RM6.5 billion offer from the federal government, after a RM200 million discount, will be spread out among the bondholders.
“But the interesting part is the equity side. This remains to be seen. The bond issues can be solved but the equity is another ball game. The bottom line is both the Selangor and federal governments want control. They want to champion cheap water.
“In this instance, the state government also has a stake in the water supply chain,” he said.
The analyst also said there was a disconnect between the federal government and the state government where the valuation of physical assets is concerned. The state owns about 80% of the physical assets such as pipes and water treatment plants.
“PAAB will still have to pay for these assets ultimately,” he added.
A bondholder said the acquisition was expected as it is in line with the consolidation of the water industry to ensure the sustainability of investor confidence for infrastructure and utility projects in Malaysia.
“The acquisition will simplify the credit risk of what was previously a fragmented and complicated group of utility bonds, which were built on a web of SPVs (special-purpose vehicles” he said.
Asked if the RM6.5 billion figure that has been bandied about was a fair number for the bondholders, he replied: “At the end of the day, the acquisition monies required would at least closely reflect the bonds’ outstanding nominal value.
“However, from an investor’s standpoint, a more holistic approach to overall returns should be addressed. For example, much management time was wasted during lengthy and numerous meetings in the initial stages of the water bonds’ financial distress, and [this] does not compensate investors for lowered yields and stretched payback periods after the acquisition.”
On Monday, Energy, Water and Green Technologies Minister Datuk Seri Peter Chin Fah Kui said the Cabinet would decide on the acquisition of the Selangor water bonds but to date there is no Cabinet paper on the matter.
“It is for the Cabinet to decide. The paper has not gone in yet. Wait for the paper to be submitted to the Cabinet,” Chin told the media when asked if the federal government would take over the water bonds.
Petaling Jaya Utara MP Tony Pua meanwhile, said in a statement any move by the government to bail out the debts of the privatised Selangor water companies has in effect killed any remaining possibility of the state government striking a deal with the companies to restructure and take over the water industry in Selangor.
Pua said had there been no bailout offered by the federal government, the companies would have to negotiate the terms of restructuring with the state government or other parties that have made offers to acquire the businesses and assets.
The Selangor government had made several offers to acquire the water companies. In January, it made an offer of more than RM9 billion for the water assets. Prior to that, in April last year, Gamuda made a RM10.75 billion offer to take over the water assets in Selangor. A month earlier, the federal government via PAAB made an offer to acquire all the water assets from the concessionaires for RM8.3 billion.
“However, as a result of the federal government bailing out the massive debts, it has relieved these companies of their cash flow problems. This will mean that there is now no urgency for these companies to agree to any form of restructuring as desired under the Water Services Industry Act (2006) as they now have the upper hand at the negotiating table at the expense of the rakyat.
“In fact, the likely outcome of the bailout is that the federal government will follow up with the taking over of the water-related assets. The privatised water concessionaires will continue to operate and profit from the provision of water services in Selangor, without being burdened by debts,” said Pua, adding that Chin ought to clarify the move for the bailout.- THEEDGE
Wednesday, May 25, 2011
Acqua SPV makes ‘fair value’ bid for Selangor water bonds
Acqua SPV Bhd, a special-purpose vehicle set up by Pengurusan Aset Air Bhd (PAAB), has made a firm offer to take over Selangor water bonds.
According to documents obtained by StarBiz, Acqua SPV will pay the bondholders based on their relevant purchase yield to maturity.
The offer documents also provided a comprehensive table explaining the settlement value. The payment will be made to bondholders by June 30.
However, it is conditional upon the receipt of valid acceptances by 5pm on May 31.
Acqua SPV will hold more than 75% of the nominal value of the securities.
Water bonds may be further downgraded if the deadlock between the Selangor and federal government as well as the concessionaires on the restructuring of the state’s water assets remained unresolved.
PAAB has appointed Maybank Investment Bank Bhd as adviser in the offer.
It was reported that the Federal Government would announce a RM6.5bil offer to buy over the Selangor water debts from bondholders.
The offer, from the Federal Government and its unit PAAB, is at a RM200mil discount to the value of the water bonds of RM6.7bil.
According to sources, there is a misconception on the amount to be paid.
“The offer is made on the book value and not the outstanding amount. There is a misconception. The existing securities have so many tranches and the offer is made with the yield to maturity and book value,” a source said.
A bondholder said there was “no hair cut” but a premium payment.
A source said the offer by Acqua SPV was “fair value”.
“Bondholders should accept the offer given the negative outlook rating on issuers. It is actually a fair value,” he said.
RAM Rating Services Bhd had said it might further downgrade the Selangor water bonds before July if the deadlock between the Selangor and Federal Government as well as the concessionaires on the restructuring of the state's water assets remained unresolved.
The initial plan was for the state's water assets to be consolidated by having PAAB take over to streamline the entire industry.
This will 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 outstanding water bonds that are rated, excluding the ones issued by PAAB, amount to RM6.7bil out of the total RM9.02bil issued.
The bonds were issued to finance the consolidation of the state's water sector.
On Monday, Energy, Green Technology and Water Minister Datuk Seri Peter Chin said it would be up to the cabinet to decide on the takeover.
However, he said the ministry had yet to submit any papers on the proposal.
“It is for the Cabinet to decide. The paper has not gone in yet. Wait for the paper to be submitted to the cabinet,” he said.-THESTAR
According to documents obtained by StarBiz, Acqua SPV will pay the bondholders based on their relevant purchase yield to maturity.
The offer documents also provided a comprehensive table explaining the settlement value. The payment will be made to bondholders by June 30.
However, it is conditional upon the receipt of valid acceptances by 5pm on May 31.
Acqua SPV will hold more than 75% of the nominal value of the securities.
Water bonds may be further downgraded if the deadlock between the Selangor and federal government as well as the concessionaires on the restructuring of the state’s water assets remained unresolved.
PAAB has appointed Maybank Investment Bank Bhd as adviser in the offer.
It was reported that the Federal Government would announce a RM6.5bil offer to buy over the Selangor water debts from bondholders.
The offer, from the Federal Government and its unit PAAB, is at a RM200mil discount to the value of the water bonds of RM6.7bil.
According to sources, there is a misconception on the amount to be paid.
“The offer is made on the book value and not the outstanding amount. There is a misconception. The existing securities have so many tranches and the offer is made with the yield to maturity and book value,” a source said.
A bondholder said there was “no hair cut” but a premium payment.
A source said the offer by Acqua SPV was “fair value”.
“Bondholders should accept the offer given the negative outlook rating on issuers. It is actually a fair value,” he said.
RAM Rating Services Bhd had said it might further downgrade the Selangor water bonds before July if the deadlock between the Selangor and Federal Government as well as the concessionaires on the restructuring of the state's water assets remained unresolved.
The initial plan was for the state's water assets to be consolidated by having PAAB take over to streamline the entire industry.
This will 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 outstanding water bonds that are rated, excluding the ones issued by PAAB, amount to RM6.7bil out of the total RM9.02bil issued.
The bonds were issued to finance the consolidation of the state's water sector.
On Monday, Energy, Green Technology and Water Minister Datuk Seri Peter Chin said it would be up to the cabinet to decide on the takeover.
However, he said the ministry had yet to submit any papers on the proposal.
“It is for the Cabinet to decide. The paper has not gone in yet. Wait for the paper to be submitted to the cabinet,” he said.-THESTAR
Nurul persoal kos naik taraf loji kumbahan naik 100 peratus
Ahli Parlimen Lembah Pantai, Nurul Izzah Anwar menggesa Kementerian Tenaga, Teknologi Hijau dan Air memberi penjelasan tentang kenaikan kos menaik taraf loji rawatan kumbahan Pantai 2 dari RM500 juta kepada RM1 bilion.
Menurut Nurul Izzah, sebelum ini berdasarkan pertemuan pihaknya dengan Indah Water Konsortium Sdn. Bhd. dimaklumkan kos menaik taraf loji tersebut sekitar RM500 juta sahaja.
“Saya difahamkan kementerian di peringkat akhir menganugerah kerja-kerja penaiktarafan loji tersebut kepada kontraktor. Mengikut pengetahuan saya, tiada usaha tender terbuka dibuat bagi kerja penaiktarafan loji ini.
“Ini bermakna projek tersebut dibuat secara rundingan terus kepada kontraktor. Apa yang membimbangkan saya ialah projek tersebut akan dianugerahkan pada nilai kontrak RM1 bilion iaitu 100 peratus lebih mahal daripada anggaran pasaran,” katanya pada sidang media hari ini.
Malah, beliau menyeru kementerian terbabit untuk menjelaskan sama ada usaha tender dibuat untuk mendapat harga terbaik projek tersebut atau tidak.
“Saya mengalu-alukan usaha mengubah loji rawatan kumbahan berdasarkan teknologi kolam terbuka kepada loji berjentera sesuai dengan piawaian keselamatan terkini. Bagaimanapun, saya menyeru agar wang rakyat yang dibelanjakan untuk projek ini diuruskan dengan telus,” katanya.
Nurul Izzah (gambar) turut memberitahu, beliau telah dimaklumkan oleh sumber tertentu mengenai kenaikkan kos ini dan mendesak kementerian terbabit memberi penjelasan.
“Ini persoalan yang selayaknya saya tanyakan pada kementerian tersebut kerana ia melibatkan dana wang rakyat sebanyak RM1 bilion.
“Bila kami dapat tahu dari sumber-sumber tertentu, kami terus maklumkan kepada orang ramai. Jadi saya desak kepada pihak kementerian agar menjawab pertanyaan ini,” katanya.
Justeru, beliau berharap kepada sesiapa yang mempunyai maklumat mengenai projek ini, tampil ke hadapan dan berikan maklumat bagi menghentikan sebarang penyalahgunaan wang rakyat.
“Saya akan memantau secara dekat pelaksaan projek ini untuk memastikan rakyat di Lembah Pantai dan Malaysia secara amnya mendapat nilai terbaik untuk wang mereka,” ujarnya. - MalaysianInsider
Menurut Nurul Izzah, sebelum ini berdasarkan pertemuan pihaknya dengan Indah Water Konsortium Sdn. Bhd. dimaklumkan kos menaik taraf loji tersebut sekitar RM500 juta sahaja.
“Saya difahamkan kementerian di peringkat akhir menganugerah kerja-kerja penaiktarafan loji tersebut kepada kontraktor. Mengikut pengetahuan saya, tiada usaha tender terbuka dibuat bagi kerja penaiktarafan loji ini.
“Ini bermakna projek tersebut dibuat secara rundingan terus kepada kontraktor. Apa yang membimbangkan saya ialah projek tersebut akan dianugerahkan pada nilai kontrak RM1 bilion iaitu 100 peratus lebih mahal daripada anggaran pasaran,” katanya pada sidang media hari ini.
Malah, beliau menyeru kementerian terbabit untuk menjelaskan sama ada usaha tender dibuat untuk mendapat harga terbaik projek tersebut atau tidak.
“Saya mengalu-alukan usaha mengubah loji rawatan kumbahan berdasarkan teknologi kolam terbuka kepada loji berjentera sesuai dengan piawaian keselamatan terkini. Bagaimanapun, saya menyeru agar wang rakyat yang dibelanjakan untuk projek ini diuruskan dengan telus,” katanya.
Nurul Izzah (gambar) turut memberitahu, beliau telah dimaklumkan oleh sumber tertentu mengenai kenaikkan kos ini dan mendesak kementerian terbabit memberi penjelasan.
“Ini persoalan yang selayaknya saya tanyakan pada kementerian tersebut kerana ia melibatkan dana wang rakyat sebanyak RM1 bilion.
“Bila kami dapat tahu dari sumber-sumber tertentu, kami terus maklumkan kepada orang ramai. Jadi saya desak kepada pihak kementerian agar menjawab pertanyaan ini,” katanya.
Justeru, beliau berharap kepada sesiapa yang mempunyai maklumat mengenai projek ini, tampil ke hadapan dan berikan maklumat bagi menghentikan sebarang penyalahgunaan wang rakyat.
“Saya akan memantau secara dekat pelaksaan projek ini untuk memastikan rakyat di Lembah Pantai dan Malaysia secara amnya mendapat nilai terbaik untuk wang mereka,” ujarnya. - MalaysianInsider
Price hike will follow water bailout
Water finds its own level. But when it comes to managing the water resources of Selangor, fairplay is the last word.
The Selangor state government wanted to take over the water assests from the four ailing privatised water companies in the state but the federal government has stepped in to bail them out.
DAP national publicity secretary Tony Pua said the BN federal government’s bailout of privatised water companies in Selangor would jeopardise the people’s chances of securing a quality water supply at the lowest possible prices.
“This move has in effect killed any remaining possibility of the Selangor government striking a deal with these companies to restructure and take over the water industry in Selangor,” said Pua in a press statement.
The Selangor government made an offer of RM6.3 billion to acquire these water companies, and take over their debt obligations.
But the federal government has jumped the gun and has made a RM6.5 billion offer to buy over the Selangor water debts from bondholders.
Selangor’s water players are Syabas, Puncak Niaga Sdn Bhd (PNSB), Syarikat Pengeluaran Air Sungai Selangor Sdn Bhd (Splash) and Konsortium ABASS .
It is understood that the federal government offer will be made through Pengurusan Aset Air Bhd (PAAB), the government’s water asset management company.
The offer is a RM200 million discount to the value of the outstanding water bonds of RM6.7 billion.
Bond holdes include Maybank Investment Bank and CIMB Group, which hold about RM1 billion of the outstanding water bonds. Insurance firms and pension funds hold about RM2 billion each while the rest is held by fund managers such as AmInvestment, CIMB Principal, RHB Asset Management and Public Mutual.
The debt service problem started when Syabas was barred from implementing a 37% tariff hike agreed upon in January 2009 after the Selangor government claimed the sole water distributor had not done enough to reduce leakages which cost the state millions.
This, in turn, led to payment problems between Syabas and water treatment concessionaires PNSB, Splash and Konsortium ABASS, who supply it with treated water.
Loss for the people
Pua explained that if BN had not offered a bailout to these companies, they would have had to negotiate restructuring with the Pakatan-led Selangor government or with other interested parties who have made offers to acquire the businesses and assets.
Gamuda, through its subsidiary Pengeluaran Air Selangor Holdings (SPLASH), has also made an offer to acquire the same companies for RM10.8 billion, a figure including the existing debts.
“In addition, the state government is able to ensure that there will be no water tariff hikes post- restructuring,” said Pua, adding that due to BN bailing out the water companies, these companies would have the upper hand at the negotiating table at the expense of the rakyat.
Pua warned that due to BN’s bailout, the privatised water concessionaires would “continue to able to operate and profit from the provision of water services in Selangor, without having to be burdened by debts which have been accumulated over the years”.
He called the bailout a loss for the people of Selangor as they no longer had the opportunity for the privatised water industry to be restructured and provide quality water at the lowest possible prices.
The PJ Utara MP urged the Minister of Energy, Water and Green Technologies, Peter Chin, to provide clarifications for the bailout before a restructuring deal could be finalised, at the expense of the people.
Pakatan Rakyat wants to control the state’s water assets so it can fulfil its promise to keep water cheap for Selangor residents by controlling tariffs.
The Selangor bailout is the first phase of the consolidation as by June 2, the government is expected to make an offer to buy the water assets in Penang for more than RM3 billion.
The Selangor state government wanted to take over the water assests from the four ailing privatised water companies in the state but the federal government has stepped in to bail them out.
DAP national publicity secretary Tony Pua said the BN federal government’s bailout of privatised water companies in Selangor would jeopardise the people’s chances of securing a quality water supply at the lowest possible prices.
“This move has in effect killed any remaining possibility of the Selangor government striking a deal with these companies to restructure and take over the water industry in Selangor,” said Pua in a press statement.
The Selangor government made an offer of RM6.3 billion to acquire these water companies, and take over their debt obligations.
But the federal government has jumped the gun and has made a RM6.5 billion offer to buy over the Selangor water debts from bondholders.
Selangor’s water players are Syabas, Puncak Niaga Sdn Bhd (PNSB), Syarikat Pengeluaran Air Sungai Selangor Sdn Bhd (Splash) and Konsortium ABASS .
It is understood that the federal government offer will be made through Pengurusan Aset Air Bhd (PAAB), the government’s water asset management company.
The offer is a RM200 million discount to the value of the outstanding water bonds of RM6.7 billion.
Bond holdes include Maybank Investment Bank and CIMB Group, which hold about RM1 billion of the outstanding water bonds. Insurance firms and pension funds hold about RM2 billion each while the rest is held by fund managers such as AmInvestment, CIMB Principal, RHB Asset Management and Public Mutual.
The debt service problem started when Syabas was barred from implementing a 37% tariff hike agreed upon in January 2009 after the Selangor government claimed the sole water distributor had not done enough to reduce leakages which cost the state millions.
This, in turn, led to payment problems between Syabas and water treatment concessionaires PNSB, Splash and Konsortium ABASS, who supply it with treated water.
Loss for the people
Pua explained that if BN had not offered a bailout to these companies, they would have had to negotiate restructuring with the Pakatan-led Selangor government or with other interested parties who have made offers to acquire the businesses and assets.
Gamuda, through its subsidiary Pengeluaran Air Selangor Holdings (SPLASH), has also made an offer to acquire the same companies for RM10.8 billion, a figure including the existing debts.
“In addition, the state government is able to ensure that there will be no water tariff hikes post- restructuring,” said Pua, adding that due to BN bailing out the water companies, these companies would have the upper hand at the negotiating table at the expense of the rakyat.
Pua warned that due to BN’s bailout, the privatised water concessionaires would “continue to able to operate and profit from the provision of water services in Selangor, without having to be burdened by debts which have been accumulated over the years”.
He called the bailout a loss for the people of Selangor as they no longer had the opportunity for the privatised water industry to be restructured and provide quality water at the lowest possible prices.
The PJ Utara MP urged the Minister of Energy, Water and Green Technologies, Peter Chin, to provide clarifications for the bailout before a restructuring deal could be finalised, at the expense of the people.
Pakatan Rakyat wants to control the state’s water assets so it can fulfil its promise to keep water cheap for Selangor residents by controlling tariffs.
The Selangor bailout is the first phase of the consolidation as by June 2, the government is expected to make an offer to buy the water assets in Penang for more than RM3 billion.
Tuesday, May 24, 2011
Federal bailout of S'gor water companies means no chance of state deal
The federal government's proposed RM6.5bil bailout of Selangor's privatised water companies has killed off any remaining possibility of the state government striking a deal with these companies to restructure and take over the water industry in Selangor.
"The debts of these water companies were at risk of default after they were unable to meet their installment earlier this year.
"The failure of these companies to service their debts, had no bailout been offered, would have necessitated these companies to come to the table and negotiate the terms of restructuring with the Selangor state government or other parties which has made offers to acquire the businesses and assets," said Petaling Jaya MP Tony Pua in a statement Tuesday.
He said the state government has made a third offer amounting to RM6.3bil into acquire these water companies, and taking over their debts obligations.
In addition, the state government was able to ensure that there would be no water tariff hikes post restructuring.
"However as a result of the Federal Government bailing out the massive debts, they have relieved these companies of their cash flow problems. This will mean that there is now no urgency for these companies to agree to any form of restructuring as desired under the Water Services Industry Act (2006) as they now have the upper hand at the negotiating table at the expense of the rakyat," Pua added.
"The result is clearly a loss for the people of Selangor, for they have lost an opportunity for the privatised water industry to be truly restructured to ensure quality water prices are to be provided at the lowest possible prices," he said.
Pua also urged Energy, Water and Green Technologies Minister Datuk Peter Chin to immediately provide clarification for the move to bail out the debts of the water concessionaires before a restructuring deal was finalised, and to fully disclose the means and terms of repayment to the Government by these concessionaires with the Government taking over these debts. - THESTAR
"The debts of these water companies were at risk of default after they were unable to meet their installment earlier this year.
"The failure of these companies to service their debts, had no bailout been offered, would have necessitated these companies to come to the table and negotiate the terms of restructuring with the Selangor state government or other parties which has made offers to acquire the businesses and assets," said Petaling Jaya MP Tony Pua in a statement Tuesday.
He said the state government has made a third offer amounting to RM6.3bil into acquire these water companies, and taking over their debts obligations.
In addition, the state government was able to ensure that there would be no water tariff hikes post restructuring.
"However as a result of the Federal Government bailing out the massive debts, they have relieved these companies of their cash flow problems. This will mean that there is now no urgency for these companies to agree to any form of restructuring as desired under the Water Services Industry Act (2006) as they now have the upper hand at the negotiating table at the expense of the rakyat," Pua added.
"The result is clearly a loss for the people of Selangor, for they have lost an opportunity for the privatised water industry to be truly restructured to ensure quality water prices are to be provided at the lowest possible prices," he said.
Pua also urged Energy, Water and Green Technologies Minister Datuk Peter Chin to immediately provide clarification for the move to bail out the debts of the water concessionaires before a restructuring deal was finalised, and to fully disclose the means and terms of repayment to the Government by these concessionaires with the Government taking over these debts. - THESTAR
Cabinet to meet on electricity tariff
SEPANG: Energy, Green Technology and Water Minister Datuk Seri Peter Chin has declined to comment on speculations of a hike in electricity tariff.
He also said that the ministry had yet to submit any papers for the RM6.5bil proposal to take over Selangor state water-related bonds.
“When? I am not confirming anything. Wait ... until the cabinet meets this Wednesday,” Chin said, when asked on the possibility of a hike in tariff during his visit to a water treatment plant site at Sungai Labu, Selangor, yesterday.
Chin says he is not confirming speculations of a hike in electricity tariff
Nanyang Siang Pau had quoted sources as saying that the Government would not increase the price of RON95 petrol for the time being. However, a price hike for electricity was expected this week, the daily said.
Last week, StarBiz, quoting sources, reported that Tenaga Nasional Bhd (TNB) could be allowed to impose a “single-digit” percentage tariff hike this week. “It will not be a double-digit hike but close to that,” sources had said, adding that some 56% of the population would not be affected by the hike.
OSK Research expected a 5% to 10% tariff hike for TNB, as the increase was long overdue, given the rising cost of coal and other raw materials. The tariff has been unchanged since March 2009.
Sources also said TNB was expected to make an announcement on Thursday on the matter.
Meanwhile, it was reported last week that the Federal Government was expected to make a RM6.5bil offer to buy over the Selangor water debts from bondholders.
The unconfirmed offer, which was supposed to come from the federal government and its unit Pengurusan Aset Air Bhd (PAAB), is at a RM200mil discount to the value of the water bonds of RM6.7bil.
Chin said it would be up to the cabinet to decide on the takeover. However, he said the ministry had yet to submit any papers for the proposal.- THESTAR
He also said that the ministry had yet to submit any papers for the RM6.5bil proposal to take over Selangor state water-related bonds.
“When? I am not confirming anything. Wait ... until the cabinet meets this Wednesday,” Chin said, when asked on the possibility of a hike in tariff during his visit to a water treatment plant site at Sungai Labu, Selangor, yesterday.
Chin says he is not confirming speculations of a hike in electricity tariff
Nanyang Siang Pau had quoted sources as saying that the Government would not increase the price of RON95 petrol for the time being. However, a price hike for electricity was expected this week, the daily said.
Last week, StarBiz, quoting sources, reported that Tenaga Nasional Bhd (TNB) could be allowed to impose a “single-digit” percentage tariff hike this week. “It will not be a double-digit hike but close to that,” sources had said, adding that some 56% of the population would not be affected by the hike.
OSK Research expected a 5% to 10% tariff hike for TNB, as the increase was long overdue, given the rising cost of coal and other raw materials. The tariff has been unchanged since March 2009.
Sources also said TNB was expected to make an announcement on Thursday on the matter.
Meanwhile, it was reported last week that the Federal Government was expected to make a RM6.5bil offer to buy over the Selangor water debts from bondholders.
The unconfirmed offer, which was supposed to come from the federal government and its unit Pengurusan Aset Air Bhd (PAAB), is at a RM200mil discount to the value of the water bonds of RM6.7bil.
Chin said it would be up to the cabinet to decide on the takeover. However, he said the ministry had yet to submit any papers for the proposal.- THESTAR
Sungai Labu Water Treatment Plant To Supply 105 Million Litres Of Water Daily To KLIA
SEPANG, May 23 (Bernama) -- The Sungai Labu water treatment plant project here, which is expected to be fully operational by year's end, is capable to supply 105 million litres of treated water daily to KL International Airport (KLIA) and the surrounding areas.
Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said he was satisfied with the progress of the project so far.
"The project is part of water mitigation programmes to overcome the shortage of water supply in Selangor pending the implementation of the Pahang-Selangor raw water transfer and Langat 2 Water Treatment Plant project," he told reporters after visiting the plant site here Monday.
Sungai Labu water treatment plant project was implemented under the second economic stimulus package by Pengurusan Aset Air Berhad at a cost of RM84.213 million.
Meanwhile, Chin said the construction of Langat 2 Water Treatment Plant, which is part of Pahang-Selangor raw water transfer project, should not be delayed any further.
"We have to start implementing the project. If not, we cannot catch up with the construction of the tunnel which is 37 per cent completed.
"We have to synchronise the construction of the plant and the tunnel. When the tunnel is ready, the water will start flowing and we must have a plant ready to treat the raw water," he said.
However, Chin said the project was still pending as the Selangor government had yet to issue the development order.
He said the project must be completed by 2014 to prevent shortage of water supply for residents in Selangor, Kuala Lumpur and Putrajaya.- BERNAMA
Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said he was satisfied with the progress of the project so far.
"The project is part of water mitigation programmes to overcome the shortage of water supply in Selangor pending the implementation of the Pahang-Selangor raw water transfer and Langat 2 Water Treatment Plant project," he told reporters after visiting the plant site here Monday.
Sungai Labu water treatment plant project was implemented under the second economic stimulus package by Pengurusan Aset Air Berhad at a cost of RM84.213 million.
Meanwhile, Chin said the construction of Langat 2 Water Treatment Plant, which is part of Pahang-Selangor raw water transfer project, should not be delayed any further.
"We have to start implementing the project. If not, we cannot catch up with the construction of the tunnel which is 37 per cent completed.
"We have to synchronise the construction of the plant and the tunnel. When the tunnel is ready, the water will start flowing and we must have a plant ready to treat the raw water," he said.
However, Chin said the project was still pending as the Selangor government had yet to issue the development order.
He said the project must be completed by 2014 to prevent shortage of water supply for residents in Selangor, Kuala Lumpur and Putrajaya.- BERNAMA
Thursday, May 19, 2011
Govt to acquire Selangor water bonds?
It is understood that an offer is likely to be made within the next two weeks to the bond holders, which include Great Eastern Life Assurance (Malaysia) Bhd, CIMB Group, the Employees Provident Fund (EPF) and Kumpulan Wang Amanah Pencen.
Terminate Water Supply Of Vacant Premises - Syabas
Syarikat Bekalan Air Selangor (Syabas) advises consumers planning to leave their homes for up to 12 months to temporarily terminate their water supply to avoid excess charges.
Its corporate affairs executive director, Abdul Halem Mat Som said, it is advisable for consumers to close their account should the period exceed one year.
If they decide not to do so, despite the vacant premises, domestic users will be imposed minimum of RM6 and RM36 for industry users which are fixed service charges enforced since Nov 1, 2006, he said in a statement here today.
He added that in the case a bill exceeds the minimum charges, it could be due to water pipe leakages or water theft.- BERNAMA
Its corporate affairs executive director, Abdul Halem Mat Som said, it is advisable for consumers to close their account should the period exceed one year.
If they decide not to do so, despite the vacant premises, domestic users will be imposed minimum of RM6 and RM36 for industry users which are fixed service charges enforced since Nov 1, 2006, he said in a statement here today.
He added that in the case a bill exceeds the minimum charges, it could be due to water pipe leakages or water theft.- BERNAMA
Selangor Wants To Meet With Federal Government To Resolve Water Issue
The Selangor government plans to hold a special meeting with the federal government next month to discuss the restructuring of the state's water industry, said Menteri Besar Tan Sri Abdul Khalid Ibrahim.
He said the decision to hold the special meeting in the first week of June was made at the state executive council (exco) meeting today, and the state goverment would be sending a letter to the federal government on the proposed meeting.
"The meeting's agenda will include discussing the building of the Sungai Langat water treatment plant or Langat 2, whereby the state government will decide whether to issue a development order soon," he told a news conference after chairing the state exco meeting, here.
Khalid said the Selangor government's stand was that priority must be given to resolving the state's water industry restructuring so that service efficiency could be improved, reasonable water tariffs could be imposed, and giving of free water for the first 20 cubic metres each month could continue.
"The state government will continue to cooperate with all quarters and is not at all against the construction of Langat 2, but we stand by our decision that the project should be implemented after the water restructuring issue has been resolved," he said.
Khalid said the state government had cooperated and done its best to speed up the water restructuring process, whereby in the last offer a clause had been included which would allow the concession holder to use international arbitration if it disagreed with the price offered.
He also said that the special meeting would only involve the state and federal governments and not the concessionaires.- BERNAMA
He said the decision to hold the special meeting in the first week of June was made at the state executive council (exco) meeting today, and the state goverment would be sending a letter to the federal government on the proposed meeting.
"The meeting's agenda will include discussing the building of the Sungai Langat water treatment plant or Langat 2, whereby the state government will decide whether to issue a development order soon," he told a news conference after chairing the state exco meeting, here.
Khalid said the Selangor government's stand was that priority must be given to resolving the state's water industry restructuring so that service efficiency could be improved, reasonable water tariffs could be imposed, and giving of free water for the first 20 cubic metres each month could continue.
"The state government will continue to cooperate with all quarters and is not at all against the construction of Langat 2, but we stand by our decision that the project should be implemented after the water restructuring issue has been resolved," he said.
Khalid said the state government had cooperated and done its best to speed up the water restructuring process, whereby in the last offer a clause had been included which would allow the concession holder to use international arbitration if it disagreed with the price offered.
He also said that the special meeting would only involve the state and federal governments and not the concessionaires.- BERNAMA
Tuesday, May 10, 2011
Hot Spell To Ease From Next Week
The current hot spell in the peninsula is only temporary and likely to ease from next week, according to the Malaysian Meteorological Department.
Its weather forecasting director Saw Bun Liong said rising temperatures of up to 36.2 degrees Celcius were caused by tropical storm Aere in northern Philippines that blew hot air to this country.
"This has reduced the air humidity and rainfall in the region," he told Bernama here.
He said the hot spell was, however, normal in May and the temperatures recorded were lower than in the same month in 1998.
During that time, the temperature recorded in Chuping was 38.9�C, Alor Setar (37.5�C), Lubuk Merbau (37�C), and Melaka and Kuala Krai (38�C), he said.
He advised the public to avoid open burning, reduce outdoor activities and drink a lot of water.
Meanwhile, the air-conditioner has become the most demanded product at electrical stores in Kuala Lumpur.
Cheras Courts Mammoth assistant manager Abdul Rahim Mohammad said they had received a lot of orders for air-conditioners the past three days.
Sen Heng Kepong branch also showed improved sales of the product last week, said its sales staff Mohd Hairani Abdul Wahab.- BERNAMA
Its weather forecasting director Saw Bun Liong said rising temperatures of up to 36.2 degrees Celcius were caused by tropical storm Aere in northern Philippines that blew hot air to this country.
"This has reduced the air humidity and rainfall in the region," he told Bernama here.
He said the hot spell was, however, normal in May and the temperatures recorded were lower than in the same month in 1998.
During that time, the temperature recorded in Chuping was 38.9�C, Alor Setar (37.5�C), Lubuk Merbau (37�C), and Melaka and Kuala Krai (38�C), he said.
He advised the public to avoid open burning, reduce outdoor activities and drink a lot of water.
Meanwhile, the air-conditioner has become the most demanded product at electrical stores in Kuala Lumpur.
Cheras Courts Mammoth assistant manager Abdul Rahim Mohammad said they had received a lot of orders for air-conditioners the past three days.
Sen Heng Kepong branch also showed improved sales of the product last week, said its sales staff Mohd Hairani Abdul Wahab.- BERNAMA
Monday, May 9, 2011
Aliran Ehsan in first water deal outside Johor Read more: Aliran Ehsan in first water deal outside Johor
Aliran Ehsan Resources Bhd is in the final stages of wrapping up a water treatment plant deal which will take the company outside of Johor for the first time ever since operating there for the last 17 years.
Its chief executive officer Anuar Kasim said the state mentioned was within the Peninsular itself and said that the contract was a sizeable amount.
"This will happen sometime this year but its not Selangor that we are looking at," he told the Business Times after the company's annual general meeting, yesterday.
Aliran is the third largest water treatment plant in terms of volume within the country and this year it expects to expand both domestically and regionally as well.
Anuar said the company also expects its revenue to grow by more than three per cent this year owning to all the expansion plans that were in the works.
"We have a lot of companies affiliated within us and we expect to use these synergy to create smart partnerships when we go and bid for jobs domestically or abroad. For instance we are looking at teaming up with Malakoff Corp Bhd as they are big in the Middle East," he said.
He also said the company is expanding its business from water treatment plants to constructions of treatment plants, managing sewerage and distribution as well.
"All these new business segment will contribute at least 20 per cent towards the company's revenue this year," he said.
Anuar added that the groups subsidiary Southern Water Technology Sdn Bhd had successfully secured a contract worth RM28 million from Pengurusan Aset Air Bhd for the construction of a water treatment plant in Kota Tinggi, Johor early this year.
He added that group's performance of profit after tax last year had improved from RM30.2 million in 2009 to RM34.3 million in 2010, an increased of RM4.1 million.
ENDS
Its chief executive officer Anuar Kasim said the state mentioned was within the Peninsular itself and said that the contract was a sizeable amount.
"This will happen sometime this year but its not Selangor that we are looking at," he told the Business Times after the company's annual general meeting, yesterday.
Aliran is the third largest water treatment plant in terms of volume within the country and this year it expects to expand both domestically and regionally as well.
"We have a lot of companies affiliated within us and we expect to use these synergy to create smart partnerships when we go and bid for jobs domestically or abroad. For instance we are looking at teaming up with Malakoff Corp Bhd as they are big in the Middle East," he said.
He also said the company is expanding its business from water treatment plants to constructions of treatment plants, managing sewerage and distribution as well.
"All these new business segment will contribute at least 20 per cent towards the company's revenue this year," he said.
Anuar added that the groups subsidiary Southern Water Technology Sdn Bhd had successfully secured a contract worth RM28 million from Pengurusan Aset Air Bhd for the construction of a water treatment plant in Kota Tinggi, Johor early this year.
He added that group's performance of profit after tax last year had improved from RM30.2 million in 2009 to RM34.3 million in 2010, an increased of RM4.1 million.
ENDS
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