Wednesday, July 25, 2012

Syabas underperforming, daily production could be 463m litres, says Selangor


Malaysian Insider, July 25, 2012

Khalid pointed out that recent findings were proof that Syabas had failed to adhere to their responsibilities as agreed upon in the Water Privatisation Agreement 2004. — file pic
SHAH ALAM, July 25 — Water utility Syarikat Bekalan Air Selangor (Syabas) is underperforming as its treatment plants can produce an additional 463 million litres daily, Selangor Mentri Besar Tan Sri Khalid Ibrahim said today.
He also said the true output capacity reserves were actually 11 per cent and will increase to 18 per cent after March 2013 when mitigation work is completed, adding the water reserves reported by Syabas to be at two per cent was inaccurate.
“The total production capacity for treated water, for all 34 water treatment plants is 4,807 million litres daily (MLD) in comparison to Syabas’ ability to distribute 4,371 MLD, which shows 436 MLD buffer.
“This shows that it is Syabas that is underperforming,” Khalid told reporters here today after chairing the state executive council meeting.
The mentri besar said the Mitigation Project I to be completed March 2013 will increase treated water production to 5,139 MLD, allowing an increase of 332 MLD or 768 MLD depending on Syabas’ distribution capabilities.
Khalid pointed out that these findings were proof that Syabas had failed to adhere to their responsibilities to supply treated water to consumers as agreed upon in the Water Privatisation Agreement 2004.
“This failure strengthens our argument and plans of the state government to step in and manage Syabas with the intent to fix all weaknesses, which includes a recommendation to sack both the Executive Chairman and Chief Executive Officer of Syabas.
“I ask that the local councils along with a few executive councillors meet with the people to find a solution to their water problems, including bringing water tanks to these areas which have been facing water supply disruptions for years,” he said.
Khalid added that the Selangor government was consistent in its stance that the water issue can be solved holistically if the state takes over the water industry from all concession firms in order to offer a more efficient water supply at reasonable prices as hoped for through the Water Service Industry Act (WSIA) 2006.
He announced last week that he would use clause 32 of the concession agreement between the state, federal government and Syabas to step in and take over water distribution operations.
State Secretary Datuk Khusrin Munawi also said only a few locations were experiencing a water supply shortage, particularly in Cheras, as supply comes from the Sungai Langat water treatment plant.
“After four meetings with former employees of PUAS and also the state economic planning unit with Syabas, we have come to find that the water crisis depicted by Syabas is not as critical as they portray,” Khusrin told reporters here today, referring to Perbadanan Urus Air Selangor (PUAS) which has been taken over by Syabas.
Khusrin, who leads the state water monitoring committee which has been observing Syabas daily operations since July 18, was briefing the state executive council at its weekly meeting today.
“Other areas are not experiencing any difficulties as portrayed by Syabas in the media. And there is no such shortage in water supply,” he added.

SEDA: Six solar power deals at risk


By Clara Chooi

Malaysian Insider, July 25, 2012
Pua said checks with CCM revealed that some firms have not met the required equity level stipulated in the contracts. — File pic
PUTRAJAYA, July 25 ― Six solar power contracts are in danger of being revoked, the Sustainable Energy Development Authority (SEDA) revealed today, saying the firms had failed to meet some of the “milestones” set to allow their operations to proceed.
But the authority would not confirm if these firms include those owned by Tan Sri Mohd Sidek Hassan’s daughter, which federal lawmakers previously revealed had not complied with a requirement stipulating that their bank accounts must have at least 20 per cent of the total capital cost of the project.
“We have checked and we know. But because of confidentiality, certain information cannot be divulged here.
“But we have checked and we realised that some (firms) have not improved their equity, some missed the milestones so some ‘letters of intent to revoke’ have [been sent] out,” SEDA chief executive officer Badriyah Abdul Malek told a public briefing today.
DAP MP Tony Pua and his PKR ally, Nurul Izzah Anwar, had recently highlighted that Mohd Sidek’s daughter, Suzi Suliana, and three others controlled 12 out of the 32 firms that had collectively won the “lion’s share” or 32.4 per cent of the country’s solar energy quota.
Pua had said that the 12 companies had jointly secured 45.9MW of the quota, which would require investments of RM367 million, based on his calculations using estimations from industry sources that each MW would require at least an RM8 million investment.
Pressing SEDA for answers during today’s briefing, Pua pointed out that information from the Companies Commission of Malaysia (CCM) had shown that at least nine of the 12 firms in question only had a paid-up capital of RM100, more than six months after the contracts were awarded.
“It can be an RM2 company when you apply. Fair enough, you set up a special purpose vehicle (SPV)... but post-application, when they are successful, they (the applicants) are supposed to top up paid-up capital to a minimum of RM200,000.
“But as of last week, it was only RM100. So why have they (the concessions) not been revoked yet?” he asked.
Responding, Badriyah confirmed the existence of the requirements, saying that applicants that did not meet the required equity levels would be running afoul of the authority’s rules.
SEDA chief operating officer Ali Askar Mohd Sher agreed and reiterated that the authority is already “in the process of revoking” some of the feed-in approvals (FiA).
“[We] have already revoked and are in the process of revoking (more). Do I need to make myself more clear than that?” he said.
SEDA’s legal adviser Toh Beng Suan added that there were legal processes that the authority has to abide by and this includes the “obligation of secrecy” for all its employees.
But she said that in its annual report, SEDA would be required to list the contracts awarded and those revoked.
When pushed further by Pua to disclose if the companies in question had met the required paid-up capital of 20 per cent of the project cost, Toh said that the information is classified.
“I’m afraid we can’t explain to you in detail. I know which company you are specifically mentioning,” she said, to which Pua demanded to know which legal provision labels the information as classified.
Pua pointed out that SEDA’s own application procedures state that the “applicant” must have sufficient credit balance in their accounts to allow for the contracts to be awarded.
“Did they comply?” he asked again.
When SEDA’s top management could not venture a specific answer, the Petaling Jaya Utara MP surmised out loud that SEDA’s failure to comply with its own regulation had resulted in the need for several contracts to be revoked.
Nurul Izzah had earlier also suggested that SEDA include a search with the Companies Commission of Malaysia (SSM) during its verification process in the FiT system, pointing out that this would help identify who is getting the chunk of its contracts.

SEDA says powerless to stop monopoly of solar deals


By Clara Chooi

Malaysian Insider, July 25, 2012
Fong said SEDA could not stop the companies from taking advantage of the tender system. — File pic
PUTRAJAYA, July 25 ― The Sustainable Energy Development Authority (SEDA) today admitted that it had known about the potential for the alleged “monopoly” of its solar power contracts by Tan Sri Mohd Sidek Hassan’s daughter, but said it had no legal power to refuse the awards.
The renewable energy authority pointed out at a public briefing here that its online feed-in tariff (e-FiT) approval system was on a “first come, first serve” basis and applicants that  fulfilled all requirements could not be rejected.
This is a first come, first serve basis and these are the consequences of the system so what the hell can I do."
But it acknowledged that bidders, noting a loophole in the system, had then applied repeatedly through various companies with the aim of snapping up a larger quota than the 5MW limit set for each application.
According to SEDA’s conditions, a single shareholder is limited to a maximum quota of 30MW.
“We are unhappy... but our legal adviser kept on telling us ‘cannot do, cannot do (reject the application)’. This is a ‘first come, first serve’ basis and these are the consequences of the system so what the hell can I do?” SEDA chairman Tan Sri Dr Fong Chan Onn said.
DAP lawmaker Tony Pua with his PKR ally and fellow MP, Nurul Izzah Anwar, recently highlighted that Suzi Suliana Mohd Sidek and three other business partners own 12 out of 32 companies that they said won the “lion’s share” or 32.4 per cent of the nation’s solar energy quota.
Suzi’s father, Mohd Sidek, had retired as the Chief Secretary to the Government last month and is the new chairman of Petronas.
SEDA chief executive officer Badriyah Abdul Malek told the briefing the authority had discovered that “certain personnel” had snapped up a large chunk of the quota, but could not do anything to stop the award.
“It’s not that we did not know... the next day, we knew it but we checked with the lawyers and the lawyers said ‘no, you can’t refuse (the award) because then they (the applicant) will sue you (SEDA) and there would be a litigation case’.
“We are only one-month-old... we cannot be embroiled in a litigation case so we are very, very careful,” she said.
She stressed, however, that an applicant’s success in securing a quota did not automatically mean that contract is theirs to execute as the firm would still have to comply with several “milestones” set by SEDA.
These milestones include a licence from the Energy Commission, the registration of its REPPA Renewable Energy Power Purchasing Agreement (REPPA) with SEDA, the presentation of the company’s banking documents showing that its finances are in order, and others.
Pua had earlier pointed out to SEDA’s officials that the spirit of the Renewable Energy Act 2011, which outlines the establishment of the online feed-in tariff system, was to ensure that no party would monopolise a chunk of the country’s solar energy quota.
“Under the law, distribution should be fair, transparent and across the board, and under the ministry’s guidelines, it should be non-monopolistic,” he said.
Responding, SEDA’s legal adviser Toh Beng Suan clarified that the 30MW limit applied to the size of the power plants, but was not a restriction on the individual applying for the contract.
“We tried as much as possible not to allow a monopolisation. But it did occur to us that even if you break your application down to 5MW, 5MW, 5MW... someone would just apply a lot.
“So if you look at the FiA (feed-in approval) rules, every time you get one FiA, it is treated as a separate plant and the law requires you to spend additional money to lay down separate cables and meters,” she said.
Toh revealed that SEDA had consulted her when it realised that it had a few cases of one shareholder applying for a collectively larger chunk of the quota
“But under the law, we do not have any legal basis to reject the applications based on that,” she said.

Seda admits to screw-up in solar power applications



  • Kuek Ser Kuang Keng
  • Malaysiakini, Jul 25, 2012
 
The Sustainable Energy Development Authority (Seda) has admitted to a weakness in the Feed-in Tariff (FiT) online application process, leading to former chief secretary Mohd Sidek Hassan’s daughter Suzi Suliana obtaining a large chunk of the solar energy quota.

NONEWorse still, Seda chairperson Fong Chan Onn admitted that the body has no legal basis to either disqualify any of the 12 companies linked to Suzi and her associates or to redistribute the energy quotas.
This is depite the online application system intended to ensure a fair distribution of the renewable energy quota among all players.

“When we first started this system, we were worried about this issue (of monopoly). We want a big number of players in the system...
“So we set a limit of 5MW per application... and the queuing process (in the application system)... (so) we could distribute it among a big number of players,” Fong said.
"At the end of the day, the result is what it is... We are not happy (with the result of the application). Frankly speaking, we are not happy. We want to distribute fairly but we are advised (that) once the rules are there, we have to follow them.

“We can (refine the rules), but even those steps would not ensure, would not 100 percent ensure that there is no monopoly or 100 percent ensure that a company would not occupy more than 30MW, because how many layers (of company structure) can we check? But we have tried.”

NONEFong said this during a public briefing on the FiT system this morning at the Seda office in Putrajaya.

He was responding to an expose by opposition MPs Tony Pua (right in photo) and Nurul Izzah Anwar (on the left) that the 12 companies linked to Suzi Suliana have obtained 32.4 percent or 45.9 MW of the quota set for solar energy under the FiT scheme.

This was achieved through a complex layer of holding companies and joint venture partnerships.
Both Pua and Nurul were present at the briefing and they grilled Fong, together with Seda chief executive officer Badriyah Abd Malek, chief operating officer Ali Askar Sher Mohamad and legal advisor Toh Beng Suan, with tough questions.

Energy from renewable energy

FiT was introduced to spearhead the development of energy generation from renewable energy, such as biogas, biomass, small hydro plants and solar photovoltaics.
It is funded by the people, through a one percent increase in electricity tariffs of consumers since last year for those using more than 300kWh.

Under the programme, private companies can apply to be renewable energy producers, and they can then sell renewable energy to power distributors such as Tenaga Nasional Bhd.

The online application system, which Seda claimed is completely free of human intervention to prevent bias and preferential treatment, works on a first-come first-served basis.

Although each applicant can only apply for a maximum of 5MW in solar power production to ensure fair distribution, Suzi managed to circumvent the system by applying through different companies.

Fong said Seda would plug the loophole when a new quota is opened for applications in the future, but warned that no system could be rig-proof.

“If people create companies of six layers, what can we do? We have tried our best within the system,” Fong added.

His view was echoed by Badriyah, who said she would not be able to perform her other duties if she were to try and trace the ultimate owner behind those companies.

One of the 50-odd people at the briefing jokingly told the floor that half of those in the hall, comprising mostly industry players, would after the briefing be finding ways to rig the system.
'It will take two hours to trace the owners'

Pua argued that even if the owner had created a company structure with 10 layers, it would not take more than two hours to trace the owner through a search with the Companies Commission of Malaysia.

He suggested that Seda should require all applicants to declare, in their applications, the ultimate shareholders of their companies.
This was because the current system only required applicants to state the shareholders of the company that submitted the application.

Fong also clarified that the issue of Suzi monopolising the quota does not arise because it is an ongoing process and a new quota will be opened up every year for application.

NONEBadriyah (right in photo, with Toh) said securing the quota did not guarantee approval to be a renewable energy producer.
This was because successful applicants would have to meet certain milestones, such as installation of the equipment, securing financial support and also getting the relevant licences from the other authorities.

Pua asked - since Suzi's majority share of the quota has gone against the spirit of the Renewable Energy Act 2011 that upholds fair distribution - whether the law allowed Seda to overwrite this flaw in the application system.
The answer was in the negative.
“To be honest with you, you talk about the majority of certain personalities and companies owning the big quota. It is not that we do not know.
“The next day (after applications were opened) we knew it already, but we checked with our lawyers and the lawyers said, 'No you can’t, they will sue you',” replied Badriyah.

Toh, the Seda legal adviser, concurred, adding that Seda has completely no legal basis to reject successful applications.

Pua tried to point out that in most of the contracts between the government and private sector, the government has the final say.
However, the Seda management said this did not exist in the FiT approval grounds.

“I’m going to be very happy (if you can find the legal rectification)... I’m with you,” chipped in Fong.

'Ex-chief sec's kin has lion's share of energy scheme'


  • S Pathmawathy
  • Malaysiakini, Jul 10, 2012
 
Pakatan Rakyat claimed today that the daughter of the recently-retired chief secretary to the government, Mohd Sidek Hassan, has the “lion’s share” in the newly-introduced renewable alternative energy scheme. 

NONEDAP national publicity secretary Tony Pua demanded that government explains why a large chunk of the allocation for solar energy via the Feed-in Tariff (FiT) mechanism went to companies without “a proven track record” in the energy field and owned by Mohd Sidek’s (right) daughter Suzi Suliana.

Pua said research showed that Suzi controlls 32.4 percent or 45.9 megawatt out of the quota set for solar energy through FiT, far above the limit of 1MW to 5MW for companies.
He noted that the information was derived from a search on the 12  companies owned by Suzi on the Companies Commission Malaysia (CCM) website.

FiT was introduced to spearhead the development of energy generation from renewable energy, such as biogas, biomass, small hydro plants and the sun. 

It is funded by the public via the consumers through a one percent increase in electricity tariffs last year for those using more than 300kWh.

Under the programme, companies in the renewable energy sector are entitled to apply to the Sustainable Energy Development Authority (Seda) to become an FiT approval holder, which can then resell the generated power from renewable energy sources to Tenaga Nasional Bhd, as provided under Seda Act 2011.

The initiative is overseen by the Energy, Green Technology and Water Ministry, which promised to prevent “monopolisation” to any FiT applicant.
“No preferential treatment will be given to any FiT application. All FiT applications will be treated fairly and equally through a transparent application process,” said Pua, quoting a past statement from the ministry.

According to Pua, Suzi secured the contracts together with her husband and business partner Todd Michael Morath, but their ownership is hidden via a complex layer of “holding companies and joint-ventures”.

“Suzi and Morath together own 100 percent of Sun Energy Ventures Sdn Bhd, which owns 98 percent of three companies - Hundrad Tech Sdn Bhd, Indo Eagle Sdn Bhd and Sharp Crest Sdn Bhd - which hold 51 percent stake in nine companies that secured 32.6MW of the total quota allocated to companies given allocations of between 1MW and 5MW.

“Suzi’s business partners and shareholders of Sharp Crest and Indo Eagle, Lim  Boon Huay and Yap Kian Mun, separately own 100 percent of Semangat Sarjana Sdn Bhd, Kenari Pasik Sdn Bhd and Tiara Insight Sdn Bhd, which own 99.99 percent of three companies - Ambang Fiesta Sdn Bhd, Gaya Dunia Sdn Bhd and Rentak Raya Sdn Bhd - which secured 13.3MW of the solar power quota,” Pua said.

‘Companies set up only on Nov 11, 2011'


“What is more shocking is the fact that all of these companies except for Sun Ventures (May 2010) and Uptown Sdn Bhd (September 2011), were set up only on Nov 11, 2011 or less than one month before applications for the permits were supposed to have been given out on Dec 2,” Pua said.

At a press conference today, he added that these companies secured quotas far above those allocated for established power players such as Cypark Resources Bhd and Petronas Power Sdn Bhd, which received 9.2 percent and 7.1 percent respectively.

“It only proves that none of these companies have any track record or experience with solar power generation but they were still given the lion’s share of the lucrative power quota,” he said.

Pua urged Energy, Green Technology and Water Minister Peter Chin and Seda chairperson Fong Chan Onn to explain the FiT application process and to douse doubts on the “integrity and competency” of Seda.

“The award has also created a lot of disquiet and unhappiness in the renewable energy industry, with many players claiming foul play and favouritism in the award of the quota,” he added.

When contacted for clarification, Chin told Malaysiakini that he would check on the allegations with the relevant officials and issue a statement on the matter.

Monday, July 23, 2012

Pulling plug on water rationing reveals Umno ploy, says Selangor


Malaysian Insider, July 23, 2012

A general view of the water treatment plant in Semenyih, July 23, 2012. Selangor insists that the reported water crisis has been manufactured to smear the state administration.—Picture by Saw Siow Feng

KUALA LUMPUR, July 23 ― Putrajaya’s admission that water rationing was not necessary in Selangor and Kuala Lumpur has proven that the issue was a political gimmick to discredit the Selangor government, state executive council member Elizabeth Wong said today.
She also said that Syarikat Bekalan Air Selangor (Syabas) has been turned into an Umno tool to coerce the Selangor government into approving the construction of the Sungai Langat Water Treatment Plant or Langat 2.
Putrajaya has said it will tender out the RM3.6 billion plant despite Selangor’s objections, citing hefty costs for constructing a new plant that will take two years to complete.
“The federal government has no real solution in improving the supply and management of treated water. In fact, they are trying to sabotage Selangor government efforts to do the right thing to protect people’s interests,” she said in a statement today.
Wong said Putrajaya did not enumerate Langat 2’s capability to address the water shortage whereas Selangor already has a RM225 million plan for water mitigation.
“What is needed is an independent committee to decide which project is more effective in solving the shortage of treated water at a low cost,” she added.
She told the Barisan Nasional (BN) federal government to acknowledge its mistake when signing the water privatisation agreement in 2004, saying the error cannot be rectified until now.
“The Selangor government has the right to take over Syabas under the Water Supply Industry Act 2006. The federal government’s decision to stop this effort shows that the BN government is partial to corporate companies linked to Umno rather than protecting the people’s interests,” she said.
Syabas is controlled by Puncak Niaga Bhd that is run by corporate figure Tan Sri Rozali Ismail, who is the Selangor Umno treasurer.
Wong also said that the chairman of the special Cabinet committee on water, Tan Sri Muhyiddin Yassin, has no experience in the matter and unable to contribute good ideas for water management.
“When he was the Johor mentri besar, he made the state water tariffs among the highest in the country,” she added.
She pointed out that efforts to privatise water supply in Johor to tycoon Tan Sri Syed Mokhtar Al-Bukhary’s MMC Corp Bhd will add to the “people’s burden”.
“The Johor people will face an unreasonable water tariff, unlike those in Selangor who receive free water. The BN government wants to pawn the rights of Johor people, but Pakatan Rakyat in Selangor will not keep quiet against those making a profit from people’s suffering,” the Bukit Lanjan assemblyman said.
Syed Mokhtar’s MMC conglomerate is seeking to form a special purpose vehicle with Pengurusan Aset Air Bhd (PAAB), a wholly-owned company under the Minister of Finance Incorporated, to take over the country’s water assets, The Edge Financial Daily reported today.
Muhyiddin, who is also deputy prime minister, also told reporters earlier today that the proposed Langat 2 water treatment plant was important to prevent Selangor, Kuala Lumpur and Putrajaya from reaching critical water supply levels by 2014.
He said the federal government will refer the Selangor government’s planned takeover of Syabas to the Attorney-General as it involved legal technicalities.
The Selangor government has also said it will pay to upgrade two water treatment plants to increase water supply if Putrajaya continued to delay transferring RM225 million for the project.
The two plants, Sungai Selangor Plant 1 (SSP1) and Sungai Selangor Plant 2 (SSP2), are currently running below their maximum capacity output due to infrastructural limitations to channel treated water out to the water supply network.

Monday, July 16, 2012

Chin: Khalid’s water tariff demand absurd


New Straits Times, 16 July 2012

PUTRAJAYA: The Selangor menteri besar’s demand over post-Langat 2 water tariffs is ludicrous, said Energy, Water and Green Technology Minister Datuk Seri Peter Chin Fah Kui.

PETER CHIN FAH KUI
Energy, Water and Green Technology Minister, Datuk Seri Peter Chin Fah Kui. NSTpix by Mohd Fadli Hamzah.
He said it was ridiculous to put the tariffs in writing now as there were many factors that needed to be taken into account when making the calculations.
“How can they ask us to put in writing the water tariff for the next one or two years? It cannot be determined today.
“The Selangor menteri besar (Tan Sri Abdul Khalid Ibrahim) should know that it is not a matter of putting a figure in writing.
The tariff must reflect the cost at the time, and must include all the cost factors,” he told the New Straits Times.
Chin said the cost would include the generative cost as well as the processing cost.
“We have to take into consideration the cost that the water concessionaires, such as Syarikat Pengeluar Air Sungai Selangor Sdn Bhd  and Puncak Niaga (M) Sdn Bhd,  are bearing. At the end of the day, the water tariff must reflect  the need at the time, and must recover the costs of the industry for it to survive.”
He was commenting on Khalid’s demand that the Federal Government put in writing the proposed post-Langat 2 water tariff and also declare water facilities worth RM10.5 billion as state assets.
Khalid last week issued the ultimatum, saying  the Federal Government needed to do it in writing and not just make verbal promises.
He had said the demands must first be met before both parties could even discuss about the Langat 2 treatment plant, which would ensure sustainable supply till 2030.
On Khalid’s second demand, that  RM10.5 billion worth of water facilities be declared state assets, Chin said the Selangor government must justify its claim on these facilities.
“The water treatment plants were built with money that was loaned from the Federal Government. In short, it must first justify and quantify these facilities, which it claims belong to it.
“They cannot generally declare the figures and not fully state where the figures came from,” he said, adding that these matters needed to be negotiated properly and not flung back and forth.
He said his ministry would facilitate the  meeting between Syarikat Bekalan Air Selangor  (Syabas) and the National Water Services Commission (Span) over water rationing in the Klang Valley.
“Syabas must get the approval from Span,  so my ministry will facilitate this.”
Nearly 210,000 households will be affected by the crisis as water reserve levels have  dropped to two per cent,  below the 10 per cent national safe level.

Syabas wants to start water rationing


STAR, 15 July 2012

PETALING JAYA: Water concessionaire Syabas will seek permission to start rationing immediately in Kuala Lumpur, Hulu Langat and Klang because of the worsening water supply shortage.
Syabas chief executive officer Datuk Ruslan Hassan said Selangor, Kuala Lumpur and Putrajaya were now facing a water crisis with reserve levels at 34 treatment plants down to an average of 2% way below the “safe mark” of at least 20% (see table).
The company asking for rationing approval from the National Water Services Commission listed 112 areas in Klang, Petaling, Hulu Langat and Kuala Lumpur as the worst hit by intermittent disruptions since April, affecting 209,678 premises and some one million residents.
Taps running dry: Ruslan (second from left) presenting drinking water to residents of Taman Sungai Besi Indah in Seri Kembangan who have been experiencing water shortage.
“We can no longer supply adequate water to Kuala Lumpur, Hulu Langat and Klang because we do not have the needed reserves,” Ruslan said, adding that the situation could worsen because of the dry spell.
He was speaking to reporters during the distribution of water to residents of Taman Sungai Besi Indah in Seri Kembangan, one of the areas in Selangor hit by supply disruption.
The housing estate and its surrounding areas have been without water since Friday evening.
Ruslan said the company was preparing a list of neighbourhoods that would be affected by the rationing, with supply to be cut off either for several hours daily or on alternate days.
He said Syabas had received thousands of telephone calls from angry residents complaining of supply disruptions.
The company's 42 water tankers, 6,700 static water tanks and 3,000 employees could only cope with a disruption affecting a maximum of 250,000 premises at any one time, he added.
“If the situation worsens, up to 7.1 million residents in Kuala Lumpur, Putrajaya and Selangor will be affected. This will be beyond our ability to handle on our own,” Ruslan said.
On the unwillingness of the Selangor Government to agree to the federal proposal for a Langat 2 treatment plant and a Pahang-Selangor transfer of raw water, Ruslan urged the two sides to negotiate.
“We ask the state and federal governments to settle whatever differences they have to resolve this issue to ensure adequate water supply,” he said.
Keeping stock: Salmah Mad Amin carrying pails of water provided by Syabas following water supply shortage at Taman Sungai Besi Indah in Seri Kembangan.
Ruslan said the Federal Government had approved about RM650mil worth of mitigation projects to cope with demand while waiting for the Langat 2 project impasse to be resolved.
These include the Sungai Labu water treatment project to meet the needs of Sepang and Nilai and Phase 3 of the Sungai Selangor water scheme to serve southern Selangor.
Ruslan said all the projects were scheduled to be completed by 2015.

Peter Chin: Federal take over of water concessionaires only in emergencies


STAR, 12 July 2012

SHAH ALAM: The Energy, Green Technology and Water Minister's power to forcefully take over water operations from concessionaires under the Water Services Industry Act (WSIA) only applies during an emergency.
Minister Datuk Seri Peter Chin Fah Kui said he could not speed up the restructuring of the water industry in Selangor by forcing the existing operators to sell their assets to the government under normal circumstances.
“I have the power to make such an announcement only during an emergency. Then I can take over (operators) Syabas, Abbas, Splash and others. But we have yet to reach a state of emergency,” he told the audience at a water forum here organised by his ministry.
Chin repeated his call to the Selangor state government to not link the water industry restructuring exercise with the construction of the Langat 2 water treatment plant.
He said the issue of water shortage must be addressed urgently, but there was plenty of time to negotiate the water industry restructuring deal.
“I asked the Attorney-General if I can tender for Langat 2 without the consent of the Selangor state government. He said no, because land matters are under the purview of the state.
“If I gave out the tender, the state can block the contractors from entering the site,” he said.
Agriculture and Agro-based Industries Minister Datuk Seri Noh Omar, who is also Selangor Umno deputy chairman, said the state government should allow Langat 2 to proceed to ensure adequate water supply and only debate over the water tariff rates later.
“If there is no point discussing tariffs if there is no water to supply,” he told reporters after the forum.

Business, worker groups reject Penang Port privatisation


By Lee Wei Lian

Malaysian Insider, July 10, 2012
KUALA LUMPUR, July 10 — A group of manufacturers and port workers have rejected Putrajaya’s proposal to privatise Penang Port which could spell trouble for any plans for a smooth takeover by tycoon Tan Sri Syed Mokhtar Al-Bukhary.
Both state Pakatan Rakyat (PR) and Barisan Nasional (BN) leaders have also voiced their disapproval to the Finance Ministry plan to sell the port to Syed Mokhtar’s Seaport Terminal, which also runs the Port of Tanjung Pelepas and Johor Port over fears that Penang could be reduced from a northern shipping hub to a minor role.
“Reject the privatisation of Penang Port to an outsider done without consultation with the people of Penang,” said the first resolution agreed by the 42 representatives of local groups in a statement issued last night.There is also fear among local BN politicians that the federal government’s move could cost them a chance to regain the state in the next general election due by next April.
The statement from the Penang state government said the Malay, Indian, Chinese Chambers of Commerce, the Federation of Malaysian Manufacturers (FMM), the Malaysian International Chamber of Commerce and Industry (MICCI), Frepenca (the Free Industrial Zone, Penang, Companies’ Association), logistics providers, freight forwarders, importers and exporters, shipping companies and agents as well as stevedores and port employees had rejected the port privatisation plan which they say would reduce the 220-year-old port to feeder status.
The rejection of the planned privatisation was one of five resolutions adopted after the various groups had met with the state administration which had initiated a roundtable discussion.
The other resolutions included calling for the immediate deepening of the port channel to accommodate larger vessels, the rejection of any proposal to relegate the port to feeder status, the revamp of the iconic Penang ferry service and that the port be returned to the state.
Penang Chief Minister Lim Guan Eng had come out strongly against the deal, saying that it was unlikely that Seaport Terminal would channel resources into Penang Port as the latter would prefer to boost his main transshipment hub Port of Tanjung Pelepas in Johor while “condemning” Penang Port, which is closely tied to the identity and economy of the state, into a “feeder port.”
Penang BN chairman Teng Chang Yeow had also urged the federal government to review its decision to privatise the island’s port, saying that many industry groups were opposed to the move and it was also counter to the sentiment of Penang folk.
MCA president Datuk Seri Dr Chua Soi Lek, who is also Penang Port Commission chief, said however that any attempt at non-co-operation by the state administration was akin to self-sabotage as the move to sell the port was made with an eye on enhancing efficiency.
“The privatisation is not to sabotage but to improve the efficiency of the port. They can fight the federal government or try to derail it but if they refuse to co-operate they will be sabotaging themselves,” he had said.
It is unclear however if political and industry resistance would be able to scupper the deal, which was confirmed by the Transport Ministry last month, especially if Syed Mokhtar’s track record is anything to go by.
The media-shy businessman has in recent years managed to assemble a vast empire of strategic assets spanning from ports to power plants, from rice and gas distribution to national carmaker Proton.
His logistics empire includes Pos Malaysia, the two ports in Johor, an airport, and his flagship enterprise MMC was reported to be evaluating the takeover of national railway KTM Berhad. MMC is also part of a joint venture working on the country’s largest infrastructure project, the My Rapid Transit (MRT) in the Klang Valley.
The acquisition spree has come at a heavy cost however and opposition lawmaker Tony Pua estimated that Syed Mokhtar’s companies have a combined debt of RM34.3 billion or more than 10 per cent of all local corporate bonds as of 2011.
Analysts said that a takeover of Penang Port by Syed Mokhtar could potentially see the port being grouped together with Johor Port and Port of Tanjung Pelepas in a new corporate entity and listed on the stock exchange.
Penang Port has declined from its once premier status ever since its free port status was taken away in the 1974.
In contrast, newcomer Port of Tanjung Pelepas started operations in 1999 but now handles more than six million TEUs a year, five times more than Penang Port.
Penang also saw cargo volumes growing only 5.8 per cent a year between 1995 and 2009 compared with Port Klang which grew 14.2 per cent annually.
The PR-controlled state administration has complained that federal ownership of the port operator has worsened its financial position, with net debt rising from RM148 million in 2004 to RM832 million in 2009 — a 462 per cent increase in five years.

Selangor to take over Syabas water supply work


By Hafidz Baharom

Malaysian Insider, July 16, 2012
SHAH ALAM, July 16 — Selangor will take over water utility Syabas’ operations to avert a supply crisis that has been described as “suspicious”, Mentri Besar Tan Sri Khalid Ibrahim said today.
He said the state government was invoking clause 32 of the concession agreement to Syarikat Bekalan Air Selangor (Syabas) and will inform the federal government of its decision.
“The water shortage and the announcement of a water-rationing programme by Syabas are suspicious to the Selangor state government as both the State Water Commissioner and Syabas’ own board of directors were not informed of this proposal,” Khalid told a press conference here.
He has also directed the State Secretary and the State Water Commission to monitor Syabas’ operations and present a daily report on the current water levels state-wide.
“As of April 2012, Syabas still has RM2.8 billion in arrears and has failed to reduce non-revenue water to 20 per cent,” he added.
Khalid also said the early audit reports showed that Syabas was not handling its capital expenditure well.
The mentri besar also said legal action would be taken if Putrajaya refused the state’s request to step in and resolve an impasse over future water supply.
On July 14, Syabas presented the Malaysian National Water Services Commission (SPAN) with a water-rationing plan that will affect the Klang Valley, particularly Kuala Lumpur, Hulu Langat and Klang.
In its last weekly report available on its website, Syabas recorded on July 5 that the average demand for water was 4,324.79 million litres a day (MLD) with clean water reserve being at 46.21 MLD, or 1.6 per cent, far below the recommended reserve of 20 per cent.
The utility provider also stated in June that the water shortage was caused by a lack of rain, contamination of rivers and scheduled maintenance work at water treatment plants.

Illegal to meddle in Selangor water issue, MB tells Putrajaya


By Lisa J. Ariffin

Malaysian Insider, June 17, 2012
KUALA LUMPUR, June 17 — Putrajaya’s “interference” in the Selangor water issue is unlawful, Tan Sri Khalid Ibrahim has alleged, referring to a 2006 legislation which he says gives the state government full power over water management. 
Malay daily Sinar Harian today reported the Selangor Menteri Besar as pointing out that the Water Services Industry Act, mooted and approved by the federal government in 2006, forbids the latter government from encroaching on the state’s powers. 
“I think the federal government cannot do it. This is because in the constitution, water management is under the state government, but its implementation and understanding is between the two governments,” Khalid was quoted as saying in the paper. 
He added that his government have also made an agreement with the federal government to resolve the water issue “in the interest of the people” and hoped Putrajaya would address the issue sincerely. 
“If they keep questioning the actions of the state government based on political reasons, we will just wait until the results of the next election,” he warned. 
“This is because I believe the power rests in the people to determine who is more [sic] fit to govern the state,” he added. 
Khalid had reportedly made the statement yesterday in response to Selangor BN deputy chairman Datuk Noh Omar, who accused the PKR government of conducting public forums for show but failed to resolve the issue of water supply. 
Noh Omar made this statement following the Selangor Water Forum, which he alleged was bias as it was attended only by state executive councillors, Pakatan Rakyat (PR) MPs, media representatives and only a few members of the public. 
Khalid said yesterday this was because the forum was considered more relevant to the people who choose less expensive means to obtain clean water. 
He said Selangor water concessionaire Syabas was not invited to participate in the discussion as the company is suing the state government. 
He also expressed disappointment that the Energy, Green Technology and Water ministry had also failed to attend a similar forum organised previously. 
Bernama Online reported last week that the Selangor government plans to proceed with its plans to restructure the water services industry, a move that will revoke the agreement under the Water Services Industry Act 2006. 
The state and federal governments, Syabas and Selangor’s other water players have been locked in a protracted dispute over the proposed restructuring of the state’s water services. 
Khalid was reported as saying last week that the restructuring will proceed despite objection from the federal government and Syabas. 
The Selangor government will use several approaches including tapping groundwater resources to balance the water supply needs of consumers. 
Khalid said the Selangor government would also increase water tariffs once every three years and of no more than 12 per cent. 
Syabas had filed an originating summons against the Selangor government and demanded RM471,642.916 compensation for failing to agree to a hike in water tariff.