Published on
August 13, 2010 in
Water.
I must reiterate my stand to the Selangor government that the water restructuring exercise should not be linked with the construction of the Langat 2 water treatment plant.
The water restructuring issue is complex as it involves many parties, namely: the federal and state governments as well as the concessionaires. The concessionaires have bond interest payments to think of as they have invested huge amounts of money and they are answerable to the bond holders.
As such, I would like to urge the Selangor government to seriously consider in approving the development order for the building of the water treatment plant. Only then the Ministry can facilitate the matter in a proper manner with industry players, suppliers and other stakeholders to ensure the project is implemented according to the schedule.
Please follow the link below as published in the Star newspaper.
http://biz.thestar.com.my/news/story.asp?file=/2010/8/13/business/6849682&sec=business
Published on
August 8, 2010 in
Water.
I must say that island tourism in Terengganu State is quite impressive. I had just visited the Perhentian Islands and the numbers of tourists visiting these islands are quite large. Though this may not be the trend for the whole year as August is in the tourist season, it is significant enough for both the State and Federal authorities to look into the infrastructures on such islands such as water, electricity, sewerage, solid wastes disposal and drainage.
Maybe a critical look should be taken to evaluate the sustainable limits of the infrastructures on these islands; if this has not been done. We should never allow the sudden influx of tourists to overwhelm the sustainability level, otherwise, the law of diminishing returns will apply. It will be a pity if it should come to that as these islands are so scenic, green and enchanting.
Please follow the news @ BERNAMA
http://bernama.com/bernama/v5/newsgeneral.php?id=519680
Published on
August 6, 2010 in
Water.
The UN General Assembly voiced deep concern that some 884 million people were without access to safe drinking water, more than 2.6 billion lacked access to basic sanitation and 1.5 million children under five years old died each year as a result of water- and sanitation-related diseases.
By a vote of 122 in favour [including Malaysia] to none against, with 41 abstentions, on 28th July 2010, the UN General Assembly adopted a resolution calling on UN Member States and international organizations to offer financial resources, build capacity, transfer technology and other resources, particularly to developing countries, in scaling up efforts to provide safe, clean, accessible and affordable drinking water and sanitation for everyone.
Please click on the link below to follow the rest of the entry.
http://www.un.org/News/Press/docs/2010/ga10967.doc.htm
http://www.un.org/apps/news/story.asp?NewsID=35456&Cr=SANITATION&Cr1=
Published on
August 3, 2010 in
Water.
Congratulations to the Perlis state government for having taken the bold step to completely restructure the water industry for future water consumers. With this, Perlis is the fourth state to migrate to the new licensing regime.
Pengurusan Aset Air Bhd (PAAB), a company wholly owned by the Minister of Finance Incorporated sealed a deal with the Perlis government worth RM203 million yesterday at PICC Putrajaya witnessed by Deputy Prime Minister of Malaysia, Y.A.B. Tan Sri Dato’ Haji Muhyiddin Bin Mohd. Yassin. Also present at the ceremony were Perlis Menteri Besar Y.A.B. Dato’ Seri Dr. Md Isa Bin Sabu, Minister of Finance (II) and my deputy Y.B. Puan Noriah Binti Kasnon.
The agreement involved the transfer of ownership on three water treatment plants, 12 reservoirs, 10 water tanks, one booster station and 1,794 kilometres of clean water pipes from the Perlis state government to PAAB.
It is my fervent hope that the states which have yet to finalise negotiations on the restructuring of water supply would heed Deputy Prime Minister’s advice to do so immediately. All initiatives taken by the federal government in restructuring the water supply industry were aimed at improving the service quality in the interests of consumers throughout the country.
In restructuring the water services industry, the policy adopted by the Federal Government is based on an asset light model, whereby operators are to focus on operations to enhance efficiency and cost effectiveness whilst the capital expenditure (Capex) is to be financed by Pengurusan Aset Air Berhad (PAAB). PAAB, a company wholly owned by the Minister of Finance Incorporated, will take over the assets and related liabilities from the water operators. PAAB will be able to secure lower costs of funds and longer tenure for loans through its better credit rating. PAAB will be licensed and regulated by Suruhanjaya Perkhidmatan Air Negara (SPAN) and all its Capex procurement procedures will be transparent.
Published on
July 22, 2010 in
Water.
Due to the rapid development and population growth, the demand for treated water is expected to go up between 2-3.5% annually for Selangor, WP Kuala Lumpur and Putrajaya. According to the National Water Source Report 2000-2050 published by the Economic Planning Unit, demand for treated water of 4,391 million litres per day in Selangor, WP Kuala Lumpur and Putrajaya is expected to exceed supply of 4,326 million litres per day from this year. By 2014, the expected demand for water in Selangor, WP Kuala Lumpur and Putrajaya will reach 4,907 million litres per day while the supply capacity is only at 4,431 million litres per day.
These figures strongly support my earlier statement which said that unless the Selangor state government cooperate with the Federal Government on the smooth implementaion of the Pahang-Selangor raw water transfer project, these three areas will definitely faced water shortage by 2014.
As such, the statement by Selangor Mentri Besar, Tan Sri Khalid Ibrahim that the state has sufficient water supply up to 2019 was inaccurate and it will confuse the public.
Please kindly refer to the Ministry’s press release below for further information.
1. http://www.kettha.gov.my/content/kenyataan-media-kerajaan-komited-memastikan-bekalan-air-yang-berterusan-kepada-penduduk-di-n
2. http://www.kettha.gov.my/content/kenyataan-media-skim-bekalan-air-mentah-dari-pahang-ke-selangor
Since I wrote on the above-mentioned subject in Febuary this year, there has been some progress with regards to the water industry as a whole. Perlis is the latest state which has completed its negotiations with officials from my Ministry and PAAB and the matter will be officially sealed next month. I wish to congratulate the Perlis State Government for taking this bold step to completely restructure the water industry in the State for the future of water consumers.
However, I cannot say I am happy with what has transpired or achieved as regards efforts to restructure the water industry in Selangor, Wilayah Persekutuan Kuala Lumpur and Putrajaya. So much efforts have been put into the processes since 2008 to try and hammer out an agreement whereby the water industry in Selangor can be put on a firm footing going into the future. Yet so little progress is made up till now. Here I want to refer to the lenghty negotiations that have been on the table since 2008. For any progress to take place, the parties concerned should adopt an attitude that some form of compromise settlement can be looked at seriously otherwise there will not be a settlement in sight. I am quiet sure all parties want to see a settlement. It is important that all efforts be made by all parties to arrive at an amicable solution. Let us leave politics off the negotiation table.
As there is still space for compromise resolution, I will not comment too much on the matter except to urge all parties to use all means within their control to bring about a proper resolution to the restructuring issue as soon as possible. Let us act realistically so that real progress can be made.
Published on
April 21, 2010 in
Water.
Over the past few days, in fact ever since the Hulu Selangor By-elections started in earnest, I received quite a few complaints from residents in the area about loss of pipe water pressure or complete loss of water due to pipes bursting. Many of these pipes were buried some 30 or 40 years ago (and thus were due for replacement anytime) but due to budget constraints, work on replacements could not go ahead. I was visiting some of these affected areas today and I heard their grouses. I can understand the sense of frustrations for those residents affected by these disruptions. Cases such as these do highlight the fact that the capex needed to remedy defects in the pipe systems throughout the country is indeed so big that efforts in this direction can only be taken in stages due to limited funds. Of course I will do my best to see that fresh funds are available in the budget proposal for fixing up some of these cases under the 10th Malaysia Plan schedule for implementation starting next year.
During my visits today, I took up two cases – one at Kpg Pasir Putih, Kelumpang while the other case at Kpg Chuang, Rasa. These cases will be done as soon as possible as funds are being made available by my ministry.
Published on
April 12, 2010 in
Water.
Congratulations to MWA for putting up a very impressive Asia Water 2010 Conference and Exhibition. While touring the various booths this morning, I am quite taken aback by the many facets of the water industry as well as the participation level of the international and local companies. No doubt this exhibition is a good gauge of the importance of the water industry.
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