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
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