STAR, Saturday March 21, 2009
By YVONNE TAN
THE Selangor government reiterates that it can legally challenge the Federal Government over the water restructuring issue in the state.
“Yes, if we want to, we can. We would like to remind the Federal Government that we have an enactment in Selangor to protect the rights of water users in the state,” Mentri Besar Tan Sri Abdul Khalid Ibrahim said after the Selangor Business Council meeting in Shah Alam yesterday.
However, Khalid says he would prefer if the matter is settled “amicably”.
“If it (the issue) reaches a stalemate, then we will exercise our rights,” he says.
“The Federal Government had agreed that the restructuring of the water industry be done through a state vehicle.
“Initially, they (the concessionaires) wanted to go with us but the Federal Government said it wanted to negotiate with them, bypassing us. The rights of the state must be respected,” Khalid says.
The state had, on Feb 13, offered RM5.71bil to the four privatised water service providers – Puncak Niaga Sdn Bhd, Syarikat Bekalan Air Sdn Bhd, Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) and Konsortium Abass Sdn Bhd – for the water assets in the state as part of the national water restructuring exercise.
But on Feb 18, two days before the deadline for them to respond to the state’s offer, the Energy, Water and Communications Ministry directed Pengurusan Aset Air Bhd (PAAB) to negotiate directly with the concessionaries. On Feb 27, it was reported that PAAB would soon make an offer worth about RM5bil to buy all the water assets from the four water concessionaires in Selangor.
Whatever the disagreements in Selangor, a deal needs to be formalised by month end or the concessionaires can impose a 37% tariff hike on water in the state.
“The issue of time is not a major issue,” Khalid says.
“This is an issue of federalism, which means the setting up of the federal and state governments. The rights of water, the rights at land are provided to the state. This issue may not happen if it falls under the same party,” he says.
“Puncak, Abass and Splash will only accept the Federal Government’s offer if the offer price is favourable,” an analyst says.
“To adopt the one-time book value purchase price (the benchmark price in previous deals), PAAB will have to come up with a more comprehensive offer for Puncak and the other concessionaires such as lower lease payments (for the assets taken over) as part of the total transaction, so that the entire value to assume the operator’s role would be similar to the concessionaires’ income streams,” the analyst says.
On another note, Khalid says he expects the local economy to improve by 2010.
“This is if the global economic conditions stabilise by year-end; if not, we may be looking at Malaysia’s economy being impacted for the next two to three years,” he says.
Friday, March 20, 2009
Wednesday, March 4, 2009
Don't politicise water issue, state govt told
New Straits Times, 4 March 2009
KUALA LUMPUR: The Selangor government has been told not to politicise the Federal Government's plan to restructure water assets in the state but instead to put the interests of consumers first.
Energy, Water and Communications Minister Datuk Shaziman Abu Mansor said the state government should not use the water issue for political gain because "at the end of the day, providing cheaper water for consumers is what matters".
"The problem is only with the Selangor government. The Pakatan Rakyat governments in Kelantan and Kedah want us to speed up acquisitions so that people can get water at a reasonable rate," he said at a media briefing yesterday on the restructuring of the water service industry in Selangor.
Early this year, the Selangor government formed a panel to review the restructuring of the water service industry in the state and for the Federal Government's plan to acquire water assets in the state.
The panel had on four occasions postponed its meeting with representatives of the ministry, Pengurusan Aset Air Bhd (PAAB) and the National Water Services Commission (Span). The last postponement was on Feb 14.
The meeting was to have ironed out details of the restructuring, including negotiations to take over the state assets in the industry, namely piping systems and 27 treatment plants worth about RM9 billion.
PAAB has now moved in to negotiate directly with the four water concessionaires in the state -- Puncak Niaga (M) Sdn Bhd, Syarikat Air Selangor Sdn Bhd (Splash), Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) and Konsortium ABASS Sdn Bhd (Abass).
Puncak Niaga and Splash own a water treatment plant each in the state.
Under the initial restructuring plan, the Selangor government, via state-controlled Kumpulan Darul Ehsan Bhd (KDEB), would take over the concessions and assets to be handed over to PAAB, a wholly-owned company under the Ministry of Finance Inc.
The assets would then be leased back to KDEB as the sole licensed operator. This is because after the restructuring, there would no longer be concessionaires. Instead, licence will be issued to the operator which would be reviewed by the Federal Government every few years.
On Feb 20, the four concessionaires rejected an offer by the Selangor government to take over their assets and concessions for RM5.7 billion (RM1.1 billion for concessions and RM4.6 billion for assets).
Among the reasons cited in a news report was that the offer was lower than expected.
The Energy, Water and Communications Ministry had set March 31 as the deadline for the deal to be finalised.
Shariman questioned the need for KDEB to take over the concessions and assets and then hand them back to PAAB.
He said the PAAB offer did not compete with the state government's offer to the concessionaires as it involved only the assets portion, which the Selangor government had agreed to sell to PAAB at its acquisition price.
"PAAB's offer would be based on principles of fairness, transparency and affordability to protect consumer interests. The value to be determined will be based on established accounting principles and financial practices and to be carried out by an independent auditor appointed by PAAB."
Shariman said he would not invoke the Water Service Industry Act 2006 to pressure the concessionaires to accept the state government's offer.
The Federal Government not only had to consider the interests of consumers but also that of bondholders and lenders who had invested in the water industry as well as shareholders of water operators, he added. -- Bernama
KUALA LUMPUR: The Selangor government has been told not to politicise the Federal Government's plan to restructure water assets in the state but instead to put the interests of consumers first.
Energy, Water and Communications Minister Datuk Shaziman Abu Mansor said the state government should not use the water issue for political gain because "at the end of the day, providing cheaper water for consumers is what matters".
"The problem is only with the Selangor government. The Pakatan Rakyat governments in Kelantan and Kedah want us to speed up acquisitions so that people can get water at a reasonable rate," he said at a media briefing yesterday on the restructuring of the water service industry in Selangor.
Early this year, the Selangor government formed a panel to review the restructuring of the water service industry in the state and for the Federal Government's plan to acquire water assets in the state.
The panel had on four occasions postponed its meeting with representatives of the ministry, Pengurusan Aset Air Bhd (PAAB) and the National Water Services Commission (Span). The last postponement was on Feb 14.
The meeting was to have ironed out details of the restructuring, including negotiations to take over the state assets in the industry, namely piping systems and 27 treatment plants worth about RM9 billion.
PAAB has now moved in to negotiate directly with the four water concessionaires in the state -- Puncak Niaga (M) Sdn Bhd, Syarikat Air Selangor Sdn Bhd (Splash), Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) and Konsortium ABASS Sdn Bhd (Abass).
Puncak Niaga and Splash own a water treatment plant each in the state.
Under the initial restructuring plan, the Selangor government, via state-controlled Kumpulan Darul Ehsan Bhd (KDEB), would take over the concessions and assets to be handed over to PAAB, a wholly-owned company under the Ministry of Finance Inc.
The assets would then be leased back to KDEB as the sole licensed operator. This is because after the restructuring, there would no longer be concessionaires. Instead, licence will be issued to the operator which would be reviewed by the Federal Government every few years.
On Feb 20, the four concessionaires rejected an offer by the Selangor government to take over their assets and concessions for RM5.7 billion (RM1.1 billion for concessions and RM4.6 billion for assets).
Among the reasons cited in a news report was that the offer was lower than expected.
The Energy, Water and Communications Ministry had set March 31 as the deadline for the deal to be finalised.
Shariman questioned the need for KDEB to take over the concessions and assets and then hand them back to PAAB.
He said the PAAB offer did not compete with the state government's offer to the concessionaires as it involved only the assets portion, which the Selangor government had agreed to sell to PAAB at its acquisition price.
"PAAB's offer would be based on principles of fairness, transparency and affordability to protect consumer interests. The value to be determined will be based on established accounting principles and financial practices and to be carried out by an independent auditor appointed by PAAB."
Shariman said he would not invoke the Water Service Industry Act 2006 to pressure the concessionaires to accept the state government's offer.
The Federal Government not only had to consider the interests of consumers but also that of bondholders and lenders who had invested in the water industry as well as shareholders of water operators, he added. -- Bernama
Sunday, March 1, 2009
Water restructuring in S’gor should not be money-making
STAR, March 1, 2009
By ZALINAH NOORDIN
PETALING JAYA: Restructuring efforts of the water services industry in Selangor should not be a money-making process, said Bar Council vice-president Ragunath Kesavan.
Instead, the State Government and the Federal Government should seek ways to resolve the matter in the best interest of the public. He was referring to the 37percent tariff hike should the issue not be settled before March 31.
“Both parties must sit down and discuss this, as the most important thing is whether they can provide the best service at the best cost,” he said.
Kesavan said that the public should be involved in the whole process. He added that when the industry was privatised, there was no proper tender system and this had led to the current disarray.
“The Federal Government, not the State Government, should have led the negotiations for the re-nationalisation of the water assets from the start.
“This is how it’s done in most other states that have embarked on this venture, like Malacca and Negri Sembilan,” he said.
The current situation leaves either consumers burdened with a higher water bill in such difficult times or the State Government pays some RM38mil a month to compensate the concessionaires, he said.
The four concessionaires; Syarikat Bekalan Air Selangor (Syabas), Puncak Niaga (M) Sdn Bhd, Syarikan Pengeluar Air Selangor Sdn Bhd and Konsortium ABBAS Sdn Bhd also have different takes on the matter.
The first three companies had rejected the state’s offer of RM4.6bil for all the water assets owned by them citing it was too low an offer.
Meanwhile, PJ Utara MP Tony Pua, who is also a member of Selangor’s Water Review Panel, shared the same view on the general unawareness of the public in Selangor regarding the water issue.
“They should be made aware of the situation and they too should take note as it will affect them should there be an increase in their bills,” he said.
He added that the review panel would hold more briefing sessions in various areas of Selangor to disseminate information on the issue.
“Their opinions should also be accounted for as they are the ones who will have to live with the changes,” added Pua.
According to him, by the end of 2013, water tariffs in Selangor could be decreased as much as 25% if the state took over the water industry.
Not only would the 20 cubic metres of free water remain but there would be a 10% decrease in tariff this year.
This would be followed by a 20% decrease in the second term in 2011, and a further 25% decrease during the third term in 2013.
“Look at Penang. We should really emulate them as it has one of the lowest water rates in the country and the State Government is running the show,” he said.
Pua said that the Federal Government’s offer to buy over all the water assets from the four water concessionaires in Selangor shows that they only have sympathy for the concessionaires and not the Selangor people.
“Of course their reason would be that the companies have invested billions of ringgit in providing water supply in Selangor and not doing well but what about people having to pay more?” claimed Pua.
By ZALINAH NOORDIN
PETALING JAYA: Restructuring efforts of the water services industry in Selangor should not be a money-making process, said Bar Council vice-president Ragunath Kesavan.
Instead, the State Government and the Federal Government should seek ways to resolve the matter in the best interest of the public. He was referring to the 37percent tariff hike should the issue not be settled before March 31.
“Both parties must sit down and discuss this, as the most important thing is whether they can provide the best service at the best cost,” he said.
Kesavan said that the public should be involved in the whole process. He added that when the industry was privatised, there was no proper tender system and this had led to the current disarray.
“The Federal Government, not the State Government, should have led the negotiations for the re-nationalisation of the water assets from the start.
“This is how it’s done in most other states that have embarked on this venture, like Malacca and Negri Sembilan,” he said.
The current situation leaves either consumers burdened with a higher water bill in such difficult times or the State Government pays some RM38mil a month to compensate the concessionaires, he said.
The four concessionaires; Syarikat Bekalan Air Selangor (Syabas), Puncak Niaga (M) Sdn Bhd, Syarikan Pengeluar Air Selangor Sdn Bhd and Konsortium ABBAS Sdn Bhd also have different takes on the matter.
The first three companies had rejected the state’s offer of RM4.6bil for all the water assets owned by them citing it was too low an offer.
Meanwhile, PJ Utara MP Tony Pua, who is also a member of Selangor’s Water Review Panel, shared the same view on the general unawareness of the public in Selangor regarding the water issue.
“They should be made aware of the situation and they too should take note as it will affect them should there be an increase in their bills,” he said.
He added that the review panel would hold more briefing sessions in various areas of Selangor to disseminate information on the issue.
“Their opinions should also be accounted for as they are the ones who will have to live with the changes,” added Pua.
According to him, by the end of 2013, water tariffs in Selangor could be decreased as much as 25% if the state took over the water industry.
Not only would the 20 cubic metres of free water remain but there would be a 10% decrease in tariff this year.
This would be followed by a 20% decrease in the second term in 2011, and a further 25% decrease during the third term in 2013.
“Look at Penang. We should really emulate them as it has one of the lowest water rates in the country and the State Government is running the show,” he said.
Pua said that the Federal Government’s offer to buy over all the water assets from the four water concessionaires in Selangor shows that they only have sympathy for the concessionaires and not the Selangor people.
“Of course their reason would be that the companies have invested billions of ringgit in providing water supply in Selangor and not doing well but what about people having to pay more?” claimed Pua.
Panel claims Selangor water tariffs can be reduced by 25%
STAR, February 27, 2009
SHAH ALAM: By the end of 2013, water tariffs in Selangor can be decreased as much as 25% if the state takes over the water sector, said a review panel appointed by the state government.
Not only would the 20 cubic metres of free water remain; but there would be a 10% decrease in tariff this year, panel member and PJ Utara MP Tony Pua told a media briefing yesterday.
This would be followed by a 20% decrease in the second term in 2011, and a further 25% decrease during the third term in 2013.
Other panel members were Klang MP Charles Santiago, academic Dr Subramaniam Pillay, lawyer Fahda Nur Ahmad Kamar and Selayang MP William Leong.
Santiago said eliminating excess spending by the state allowed for the water tariff to go down.
The panel also said the Federal Government, having initiated direct talks with the four water concessionaires in the state, must not exclude the state government which owned 70% to 80% of Selangor’s water assets.
Meanwhile, at a separate function, Syabas executive chairman Tan Sri Rozali Ismail, when asked about his alleged seven-figure remuneration, said: “If they want professionals to run the company, they will have to pay.”
He was speaking to reporters after signing a Memorandum of Understanding between Syabas and the Construction Industrial Development Board yesterday.
SHAH ALAM: By the end of 2013, water tariffs in Selangor can be decreased as much as 25% if the state takes over the water sector, said a review panel appointed by the state government.
Not only would the 20 cubic metres of free water remain; but there would be a 10% decrease in tariff this year, panel member and PJ Utara MP Tony Pua told a media briefing yesterday.
This would be followed by a 20% decrease in the second term in 2011, and a further 25% decrease during the third term in 2013.
Other panel members were Klang MP Charles Santiago, academic Dr Subramaniam Pillay, lawyer Fahda Nur Ahmad Kamar and Selayang MP William Leong.
Santiago said eliminating excess spending by the state allowed for the water tariff to go down.
The panel also said the Federal Government, having initiated direct talks with the four water concessionaires in the state, must not exclude the state government which owned 70% to 80% of Selangor’s water assets.
Meanwhile, at a separate function, Syabas executive chairman Tan Sri Rozali Ismail, when asked about his alleged seven-figure remuneration, said: “If they want professionals to run the company, they will have to pay.”
He was speaking to reporters after signing a Memorandum of Understanding between Syabas and the Construction Industrial Development Board yesterday.
Toll hike postponed indefinitely
STAR, February 27, 2009
By ROYCE CHEAH and MAZWIN NIK ANIS
KUALA LUMPUR: The toll hike for five major highways that was set to take place on Sunday has been postponed indefinitely.
Works Minister Datuk Seri Mohd Zin Mohammed said the decision was made due to the negative public reaction and the current economic situation.
“When the announcement was made, there was negative public reaction. As a result, the Cabinet decided today (Friday) to postpone the toll hike indefinitely,” he told a press conference at the Works Ministry here on Friday.
The toll hike, had it taken place, would have increased toll rates on the North-South Expressway by 0.68sen per km; the Sprint Highway by between 30sen and 50sen; the Sungai Besi Highway (Besraya) by 10sen; the Ampang-Kuala Lmpur Elevated Highway (Akleh) by 50sen and the New Pantai Expressway (NPE) by 40sen.
The announcement met with strong opposition from consumer groups, lorry and bus associations as well as Members of Parliament from both sides of the House.
They said it was not a good time to increase toll rates considering the economic situation.
Prime Minister Datuk Seri Abdullah Ahmad Badawi, who is in Thailand for the Asean Defence Ministers meeting, had also asked for the decision to be reconsidered.
Mohd Zin said as a result of the toll hike cancellation, the Government would have to fork out an additional RM287mil to pay the concessionaires - PLUS (RM195mil), Sprint (RM36mil), Akleh (RM27mil), Besraya (RM9mil) and NPE (RM20mil) - for the period Jan 1 to Dec 31 this year.
Mohd Zin said RM245mil was already paid to PLUS, Akleh and Sprint in the form of compensation due to a scheduled increase in January last year that did not take place.
“The Finance Ministry will prepare the compensation as stipulated in the concession agreement.”
Mohd Zin said the money being used for compensation was also the public’s money that could have been used to implement other projects that could benefit the entire country.
Meanwhile, in Putrajaya, Deputy Prime Minister Datuk Seri Najib Tun Razak said the toll hike postponement was not meant to woo voters in the three upcoming by-elections.
He said the toll hike was put off because the public protested and was unhappy with the hike, even though the decision meant that the government would have to fork out a substantial amount of money to compensate the five highway concessionaires.
“This is not an election gimmick. This is not to attract voters (to support Barisan Nasional) and they have our undertaking that it (toll rates) will not be increased once the by-elections are over,” the Deputy Prime Minister told reporters on Friday.
Three by-elections will be held within the next few months - in Bukit Gantang (Perak), Bukit Selambau (Kedah) and also in Batang Ai (Sarawak).
The Bukit Gantang parliamentary seat fell vacant when its MP, Roslan Shahrum of PAS died on Feb 9 while the Bukit Selambau state seat is empty when assemblyman V. Aurumugam resigned on Feb 8. The by-elections for the two constituencies will be held on April 7.
The Batang Ai state seat in Sarawak is vacant following the death of its assemblyman Datuk Dublin Unting and the Election Commission will decide on polling date for this seat on March 4.
Najib also confirmed that the postponement was indefinite.
“We do not know for how long as it will depend on our affordability (to pay compensation). We will make whatever necessary decision when the time comes.
“But by not increasing the toll rates, the government has to fork out an additional RM500million a year and that is tax payers’ money,” he said.
Najib said the increase announced by the Works Ministry earlier was a “moderate increase” and the government had to pay more compensation if there was no increase at all.
“The amount will be substantial and it will add up over the years. But the public is so averse to any increase; which I understand.
“So the government decided not to increase but this means we will have to set aside more money for compensation,” he said.
On Thursday, Mohd Zin announced that road users would have to pay a higher toll when using the North-South Expressway (PLUS), the Sprint/Kerinchi/Damansara Link highways, Ampang-Kuala Lumpur Expressway (AKLEH), Sungai Besi Highway and the New Pantai Expressway (NPE).
For the PLUS highway, it was a 5% increase. This meant that toll charges from Bukit Kayu Hitam in Kedah to Kempas in Johor would increase from RM108 to RM113.40.
A trip from Kuala Lumpur to Ipoh would increase from RM26.50 to RM27.90.
For the Sprint/Kerinchi/Damansara Link highways, it was an increase of between 30sen and 50sen.
The Sungai Besi Highway was to see an increase of 10sen, while the AKLEH and NPE were to be increased by 50sen and 40sen respectively.
Mohd Zin had said the increase was minimal and hoped the public understood that the increase was stipulated in the concession agreements that the Government had signed.
Prime Minister Datuk Seri Abdullah Ahmad Badawi, however, urged for the decision to increase the toll rates to be reconsidered.
He said the matter will be discussed in the Cabinet meeting Friday, which will be chaired by Deputy Prime Minister Datuk Seri Najib Tun Razak.
“People are having difficulties. The situation is not right for a toll hike. I feel that this matter needs to be discussed again in the Cabinet.
”The decision may come in the form of measures that will included in the second stimulus package or through some other measures,” he had said in Pattaya, where he was attending the Asean Defence Minister’s Meeting.
By ROYCE CHEAH and MAZWIN NIK ANIS
KUALA LUMPUR: The toll hike for five major highways that was set to take place on Sunday has been postponed indefinitely.
Works Minister Datuk Seri Mohd Zin Mohammed said the decision was made due to the negative public reaction and the current economic situation.
“When the announcement was made, there was negative public reaction. As a result, the Cabinet decided today (Friday) to postpone the toll hike indefinitely,” he told a press conference at the Works Ministry here on Friday.
The toll hike, had it taken place, would have increased toll rates on the North-South Expressway by 0.68sen per km; the Sprint Highway by between 30sen and 50sen; the Sungai Besi Highway (Besraya) by 10sen; the Ampang-Kuala Lmpur Elevated Highway (Akleh) by 50sen and the New Pantai Expressway (NPE) by 40sen.
The announcement met with strong opposition from consumer groups, lorry and bus associations as well as Members of Parliament from both sides of the House.
They said it was not a good time to increase toll rates considering the economic situation.
Prime Minister Datuk Seri Abdullah Ahmad Badawi, who is in Thailand for the Asean Defence Ministers meeting, had also asked for the decision to be reconsidered.
Mohd Zin said as a result of the toll hike cancellation, the Government would have to fork out an additional RM287mil to pay the concessionaires - PLUS (RM195mil), Sprint (RM36mil), Akleh (RM27mil), Besraya (RM9mil) and NPE (RM20mil) - for the period Jan 1 to Dec 31 this year.
Mohd Zin said RM245mil was already paid to PLUS, Akleh and Sprint in the form of compensation due to a scheduled increase in January last year that did not take place.
“The Finance Ministry will prepare the compensation as stipulated in the concession agreement.”
Mohd Zin said the money being used for compensation was also the public’s money that could have been used to implement other projects that could benefit the entire country.
Meanwhile, in Putrajaya, Deputy Prime Minister Datuk Seri Najib Tun Razak said the toll hike postponement was not meant to woo voters in the three upcoming by-elections.
He said the toll hike was put off because the public protested and was unhappy with the hike, even though the decision meant that the government would have to fork out a substantial amount of money to compensate the five highway concessionaires.
“This is not an election gimmick. This is not to attract voters (to support Barisan Nasional) and they have our undertaking that it (toll rates) will not be increased once the by-elections are over,” the Deputy Prime Minister told reporters on Friday.
Three by-elections will be held within the next few months - in Bukit Gantang (Perak), Bukit Selambau (Kedah) and also in Batang Ai (Sarawak).
The Bukit Gantang parliamentary seat fell vacant when its MP, Roslan Shahrum of PAS died on Feb 9 while the Bukit Selambau state seat is empty when assemblyman V. Aurumugam resigned on Feb 8. The by-elections for the two constituencies will be held on April 7.
The Batang Ai state seat in Sarawak is vacant following the death of its assemblyman Datuk Dublin Unting and the Election Commission will decide on polling date for this seat on March 4.
Najib also confirmed that the postponement was indefinite.
“We do not know for how long as it will depend on our affordability (to pay compensation). We will make whatever necessary decision when the time comes.
“But by not increasing the toll rates, the government has to fork out an additional RM500million a year and that is tax payers’ money,” he said.
Najib said the increase announced by the Works Ministry earlier was a “moderate increase” and the government had to pay more compensation if there was no increase at all.
“The amount will be substantial and it will add up over the years. But the public is so averse to any increase; which I understand.
“So the government decided not to increase but this means we will have to set aside more money for compensation,” he said.
On Thursday, Mohd Zin announced that road users would have to pay a higher toll when using the North-South Expressway (PLUS), the Sprint/Kerinchi/Damansara Link highways, Ampang-Kuala Lumpur Expressway (AKLEH), Sungai Besi Highway and the New Pantai Expressway (NPE).
For the PLUS highway, it was a 5% increase. This meant that toll charges from Bukit Kayu Hitam in Kedah to Kempas in Johor would increase from RM108 to RM113.40.
A trip from Kuala Lumpur to Ipoh would increase from RM26.50 to RM27.90.
For the Sprint/Kerinchi/Damansara Link highways, it was an increase of between 30sen and 50sen.
The Sungai Besi Highway was to see an increase of 10sen, while the AKLEH and NPE were to be increased by 50sen and 40sen respectively.
Mohd Zin had said the increase was minimal and hoped the public understood that the increase was stipulated in the concession agreements that the Government had signed.
Prime Minister Datuk Seri Abdullah Ahmad Badawi, however, urged for the decision to increase the toll rates to be reconsidered.
He said the matter will be discussed in the Cabinet meeting Friday, which will be chaired by Deputy Prime Minister Datuk Seri Najib Tun Razak.
“People are having difficulties. The situation is not right for a toll hike. I feel that this matter needs to be discussed again in the Cabinet.
”The decision may come in the form of measures that will included in the second stimulus package or through some other measures,” he had said in Pattaya, where he was attending the Asean Defence Minister’s Meeting.
Selangor yet to negotiate with federal govt on water
BERNAMA, February 26, 2009
SHAH ALAM: The water review panel, formed by the Selangor Government to review the restructuring of the water industry in the state, has yet to begin negotiations with the Federal Goverment for the acquisition of its water assets.
One of the panel members, Prof Dr Subramaniam Pillay, told a media briefing that the Federal Government had not met the panel to negotiate the take over of the state assets in the industry, that is, piping systems and 27 treatment plants worth about RM9 billion.
The water industry concessionaires in Selangor, namely Puncak Niaga (M) Sdn Bhd and Syarikat Pengeluaran Air Selangor Sdn Bhd (SPLASH), each own a water treatment plant in the state, said Pillay who is associate professor at the Nottingham University campus in Malaysia.
At the moment, Pengurusan Aset Air Bhd (PAAB) has moved in to negotiate directly with the four water concessionaires in the state, namely Puncak Niaga, SPLASH, Syarikat Bekalan Air Selangor Sdn Bhd (SYABAs) and Konsortium ABASS Sdn Bhd (Abass) in the restructuring of the water industry.
Under the initial restructuring plan, the Selangor Government via state controlled company, Kumpulan Darul Ehsan Bhd (KDEB), will take over the concessions and the assets to hand them over to PAAb, a wholly-owned company under the Ministry of Finance Inc.
The assets would then be leased back to KDEB as the sole licensed operator, as after the restructuring, there would be no more concessionaire, but a licence issued to the operator, subject to a review by the Federal Goverment within certain number of years, he said.
The existing four concessionaires had also rejected an offer by the state government to take over their assets and concessions for RM5.7 billion (RM1.1 billion for concessions and RM4.6 billion for assets) on Feb 20, this year, he said.
Among the reasons cited in a news report was that the offer was lower than their expectations.
However, another member panel, Tony Pua, said the state government believed that if it was given the licence to be the sole operator of the industry, it could provide cheaper water tariff to the public, due to the existing economies of scale in Selangor and maintain the free water policy for the first 20 cubic metre.
At present, the average price per cubic metre of water in Selangor for domestic use was 77sen, and this year, with the existing economies of scale in Selangor, the water tariff could be brought down by 10 percent to 69sen, and by 25 percent to 57sen in 2013, said Pua, who is also Petaling Jaya Utara assemblyman and a corporate lawyer.
He said this could be done through better management of the water industry, adding that Penang, which is smaller than Selangor, had proved it could supply water for domestic use at 37sen per cubic metre.
Should the state government fail to hand over its water assets to PAAB by March 31, this year, the water tariff could shoot up by 37percent.
There is also talk that SYABAS would likely get the licence if the Federal Government took over the state water assets, said Pua. - Bernama
SHAH ALAM: The water review panel, formed by the Selangor Government to review the restructuring of the water industry in the state, has yet to begin negotiations with the Federal Goverment for the acquisition of its water assets.
One of the panel members, Prof Dr Subramaniam Pillay, told a media briefing that the Federal Government had not met the panel to negotiate the take over of the state assets in the industry, that is, piping systems and 27 treatment plants worth about RM9 billion.
The water industry concessionaires in Selangor, namely Puncak Niaga (M) Sdn Bhd and Syarikat Pengeluaran Air Selangor Sdn Bhd (SPLASH), each own a water treatment plant in the state, said Pillay who is associate professor at the Nottingham University campus in Malaysia.
At the moment, Pengurusan Aset Air Bhd (PAAB) has moved in to negotiate directly with the four water concessionaires in the state, namely Puncak Niaga, SPLASH, Syarikat Bekalan Air Selangor Sdn Bhd (SYABAs) and Konsortium ABASS Sdn Bhd (Abass) in the restructuring of the water industry.
Under the initial restructuring plan, the Selangor Government via state controlled company, Kumpulan Darul Ehsan Bhd (KDEB), will take over the concessions and the assets to hand them over to PAAb, a wholly-owned company under the Ministry of Finance Inc.
The assets would then be leased back to KDEB as the sole licensed operator, as after the restructuring, there would be no more concessionaire, but a licence issued to the operator, subject to a review by the Federal Goverment within certain number of years, he said.
The existing four concessionaires had also rejected an offer by the state government to take over their assets and concessions for RM5.7 billion (RM1.1 billion for concessions and RM4.6 billion for assets) on Feb 20, this year, he said.
Among the reasons cited in a news report was that the offer was lower than their expectations.
However, another member panel, Tony Pua, said the state government believed that if it was given the licence to be the sole operator of the industry, it could provide cheaper water tariff to the public, due to the existing economies of scale in Selangor and maintain the free water policy for the first 20 cubic metre.
At present, the average price per cubic metre of water in Selangor for domestic use was 77sen, and this year, with the existing economies of scale in Selangor, the water tariff could be brought down by 10 percent to 69sen, and by 25 percent to 57sen in 2013, said Pua, who is also Petaling Jaya Utara assemblyman and a corporate lawyer.
He said this could be done through better management of the water industry, adding that Penang, which is smaller than Selangor, had proved it could supply water for domestic use at 37sen per cubic metre.
Should the state government fail to hand over its water assets to PAAB by March 31, this year, the water tariff could shoot up by 37percent.
There is also talk that SYABAS would likely get the licence if the Federal Government took over the state water assets, said Pua. - Bernama
MACC becomes official today
STAR
Tuesday February 24, 2009
By LOURDES CHARLES
PUTRAJAYA: The Malaysian Anti-Corruption Commission (MACC), which came into effect on Jan 1, will be officially unveiled by Datuk Seri Abdullah Ahmad Badawi today.
The event will be the culmination of the Prime Minister’s efforts to reform the Anti-Corruption Agency (ACA) and boost the fight against corruption.
The MACC, modelled after the much respected and feared Independent Commission Against Corruption of Hong Kong, has replaced the 41-year-old ACA.
In its bid to enhance effectiveness, the MACC has also set up the Anti-Corruption Advisory Board, the Special Committee on Corruption and the Complaints Committee. Today’s event will also see the naming of the members who will make up the three bodies.
The seven-member board are appointed by the Yang di-Pertuan Agong on the advice of the Prime Minister.
The members, who will serve a three-year term, are persons of integrity and who had rendered distinguished public services. They will not hold office for over two terms. The board will advise the commission on corruption in Malaysia including its eradication policies and strategies.
The Special Committee will advise the Prime Minister on corruption in the country and its seven members, also appointed by the King, will not be members of the administration but be drawn from the Senate and the House of Representatives.
Tuesday February 24, 2009
By LOURDES CHARLES
PUTRAJAYA: The Malaysian Anti-Corruption Commission (MACC), which came into effect on Jan 1, will be officially unveiled by Datuk Seri Abdullah Ahmad Badawi today.
The event will be the culmination of the Prime Minister’s efforts to reform the Anti-Corruption Agency (ACA) and boost the fight against corruption.
The MACC, modelled after the much respected and feared Independent Commission Against Corruption of Hong Kong, has replaced the 41-year-old ACA.
In its bid to enhance effectiveness, the MACC has also set up the Anti-Corruption Advisory Board, the Special Committee on Corruption and the Complaints Committee. Today’s event will also see the naming of the members who will make up the three bodies.
The seven-member board are appointed by the Yang di-Pertuan Agong on the advice of the Prime Minister.
The members, who will serve a three-year term, are persons of integrity and who had rendered distinguished public services. They will not hold office for over two terms. The board will advise the commission on corruption in Malaysia including its eradication policies and strategies.
The Special Committee will advise the Prime Minister on corruption in the country and its seven members, also appointed by the King, will not be members of the administration but be drawn from the Senate and the House of Representatives.
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