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.
Last night I attended the 44th Installation Ceremony of the Lions Club of Miri Host. I noticed a pleasant change within the Club of which I became a member in 1973 and still an annual dues paying one. Leadership is provided by both male and female members who win the support of the majority of members. The IPP is a lady and there are two other ladies in the Board (including the Treasurer). Congratulations to the newly installed President and his team and I wish them every success in the future undertakings.
A successful Board is one which can gell very well and always have fun together in leading the Club in all its activities. No doubt the spirit of wanting to contribute in a positive manner is basic; but in order to sustain the level of interest and participation, comradeship amongst leaders as well as members is the binding factor. Like most things in life, we only see results with sustained efforts. I am sure we will be more satisfied when we have participated actively in the combined efforts of all members: old and new; male and female.
Members of the Lions clubs in Malaysia have been doing much needed welfare services to help the poor and the handicapped and I am sure this trend will continue.
Published on
July 23, 2010 in
Energy.
The federal and state governments are committed and determined to resolve the electricity supply situation in Sabah. This morning, I accompanied Sabah Chief Minister Datuk Seri Panglima Musa Haji Aman to launch the commissioning of the 2nd 65 megawatt (MW) Powertron II.
With the commissioning of the second unit GT1B from GE France, this will thus strengthen the SESB Grid to 130MW under Open Cycle Operation from the Rugading Power Station. Total capacity for Powertron II will reach 190MW when fully operational in December this year. By then, it will help to alleviate the shortage of electricity supply. Hopefully, we will achieve the SAIDI target of 700 minute at the end of this year.
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
Published on
July 17, 2010 in
article.
Reductions in subsidies for fuel (petrol and diesel) and food items (sugar, flour and cooking oil) attracted some mixed comments from those who praised the Government for the brave decisions to those who are down-right nasty and anti-government. Those who are “in the know” and well-informed generally accept the fact that to keep these and other subsidies over the long run is indeed madness in so far as managing the economy of the country is concerned. Subsidies which blanketly cover everyone, rich or poor, are really not the way to go. We must target those deserving groups e.g.the hardcore poor, those who are lowly paid and those who are handicapped. I do hope there can be a way to restructure subsidies to avoid wastages as well as abuses or leakages. I do think everyone will accept the argument that subsidies are to be tailoured in such a way so that those who can afford pay a little bit more while those who cannot afford will be paying less. For these and other reasons, the government needs to rationalise the country’s subsidies and move on from there to make the country more efficient as well as competitive.
The Ministry of Energy, Green Technology and Water is tasked to spearhead and coordinate the green technology development in Malaysia. As one of the outreach programmes, my Ministry, with the cooperation of Malaysian Green Technology Corporation (GreenTech Malaysia) and Federation of Malaysian Manufacturers (FMM) conducted the first Green Technology Road Show at Pullman Hotel, Kucing, Sarawak on 15th July 2010.
The seminar conducted during this roadshow aimed to provide a better understanding on the National Green Technology Policy, Green Technology Initiatives, The International Green Tech and Eco Products Exhibition and Conference 2010 (IGEM 2010) and Green Technology Financing Scheme (GTFS).
This road show will be held in a few selected states; namely; Pahang, Johor, Perak and Sabah between September-December 2010. It is open to all prospective GT project developers (both producers and users) under energy, building, transport as well as water and waste sectors; GT consultants, related industries and businesses, research and development organisations, government agencies as well as non-government organisations.
Published on
July 15, 2010 in
article.
Giving bright students JBA scholarships for further studies either local or foreign institutions of higher learning is a very good decision and I do hope everyone will support this effort by the government. To achieve straight 9A+ is more than proof that the particular student is bright and he is really the creme de la creme of our young talents. Questions have often been directed at me as to why a student having achieved good results and not being given a JPA scholarship. I believe with this decision, such a question will not arise in the future. Our Prime Minister should be congratulated for being so “open-minded” in solving this issue.
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.
Green Building Index or GBI which is a voluntary cerfifying scheme organised by the PAM (Pertubuhan Arkitek Malaysia) and IEM (Institute Engineers Malaysia) jointly is being recognised by my Ministry (KeTTHA) as the pioneer body to set up this program in Malaysia. It is also appropriate that the GBI starts off as a voluntary program for those who wish to embrace it and my Ministry sees this as a positive development in the area of construction and building industry.
However, I have recently received complaints about the types of fees the professionals are charging for their services for the GBI scheme. I have spoken to the President of PAM on the issue and I do hope this matter can respond to the critics and justify their positive roles.
It is important that rules do not unnecessarily bring about a negative impact on the program. I am interested to see wider application of the program.
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