12 œ  theSun | FRIDAY FEBRUARY 27 2009

news without borders

‘10% less tariff if Selangor Ministry: Look for

takes over water’
by Maria J. Dass
newsdesk@thesundaaily.com
SHAH ALAM: If Selangor has its way, consumers in
Kuala Lumpur, Selangor and Putrajaya will be paying
10% less in water tariff this year, to be further reduced
by 20% in 2011 and 25% in 2013, said Selangor Water
Review Panel member Tony Pua.
This translates into 69 sen, 61 sen and 57 sen per
cubic metre respectively compared with the higher
tariffs expected after March 31 if the federal government
grants the licence to treat and distribute water in the
state to concession companies, he said.
Speaking at a press briefing on water asset restruc-
turing efforts by the state, Pua said while the projected
tariff increase of 12% is much lower than the scheduled
37% increase for 2009, consumers will still be paying
more as they would have to incur a hike as opposed to
a reduction if the state takes over.
However, the state’s offer of RM5.7 billion to acquire
equity in the four water concession companies in the
state – Puncak Niaga Sdn Bhd, Syarikat Bekalan Air
Selangor, Syarikat Pengeluar Air Selangor Sdn Bhd and
Konsortium Abass Sdn Bhd – had been disrupted by the
federal government when the National Water Services
Commission (Span) announced on Feb 18 it would ne-
gotiate directly with the companies as the state had
taken too long to do so, since the deadline for the tariff
increase is March 31.
This was seen by the state as an act of bad faith as it
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solutions, don’t
had been given an undertaking that the federal govern-
politicise issue
by Tim Leonard
newsdesk@thesundaily.com
ment would wait for the concession companies’ response
to the state’s offer before making the next move, said KUALA LUMPUR: Energy, Water
Pua. and Communications Ministry
He referred to the current scenario as an effort to wants the Selangor government
“bail out” the concession companies which have a col- to stop “politicising” the water
lective debt of RM6.4 billion. assets takeover issue and instead
“The restructuring is seen as a way out for the concession concentrate on finding workable
companies which are having cash flow problems and high solutions for all parties, especially
bond repayments,” he said, adding that under the planned the people of Selangor.
restructuring and licensing of water concession companies When art Its minister Datuk Shaziman Abu
in the state, the federal government via Pengurusan Aset Air Mansor said the government is not
Bhd (PAAB) will absorb the capital expenditure and assets
imitates
“sabotaging” or delaying the deal
while the concession companies will be tasked only with life for Pakatan Rakyat-led Selangor
the treatment and distribution of water. pg 18 administration.
“Under this asset-light model the concession compa- “We are actually working hard
nies will not have to worry about asset depreciation or to make all parties happy,“ he
loans to maintain the assets as the federal government said.
will be absorbing this,” he said. “This is not a political issue and
State officials point out that this means that while I wish all parties concerned could
people in Selangor may be spared of drastic hikes over see the figures themselves to learn
the next few years, Malaysians in general will have to of the actual picture.
compensate for the lower cost of water in Selangor. “It will be unfair to say we are
For the state, the main aim of taking over the water not being reasonable.
industry is to make it more efficient, not maximising profit,
“Time is also running out, and
Pua said.
the Selangor government is delay-
Another panel member, Charles Santiago, said the
ing the process,” he said.
savings from improved efficiency would go towards de-
He said Selangor had delayed
veloping new water conservation efforts like rain water
on four occasions – Sept 19 and
harvesting and other related technologies in the state.
Dec 31 last year, and Jan 15 and
Feb 14 this year. Selangor has until
March 31 to hand over the water
assets.
“By taking over the water assets,
we are actually making the state
asset-light and making available
cheap funds for the operations.
“We are transparent in carrying
No-confidence plan
against Tee Keat
Press Digest
by Kong See Hoh
newsdesk@thesundaily.com
MEMBERS of an anti-Ong Tee
Keat faction in MCA claim that
they can gather at least 800 sig-
natures from central delegates in
one week, a number big enough
to force the party to convene an
extraordinary general meeting
(EGM) for a vote of no-confi-
dence to be moved against the
party president.
According to a report in Sin
Chew Daily yesterday, it is learnt
that the group is waiting for the
right time to launch their signa-
ture campaign and it is believed
they are planning to have the
EGM in April.
MCA has 2,401 central del-
egates based on the 2008 party
elections.
Under the party constitution,
an EGM can be called if it gets
the support of one-third of the
central delegates, or 800 in this
case.
Any party leader can be
removed at the EGM via a mo-
tion of no-confidence if it has
the support of two-thirds of the
delegates.
Sources believed the group is
confident of getting at least half
the number of central delegates
to support a no-confidence vote.
It is also learnt that the anti-
Ong group has picked April to
launch the signature campaign
to avoid clashing with the cam-
paign for the Bukit Gantang and
Bukit Selambau by-elections,
which will be held on April 7.
It also has to be executed
before the next cabinet reshuf-
out the deal,” he said.
He said time is running out and
further delay would mean less time
to navigate the situation should the
current bonds expire and inevitably
lead to higher tariffs in time to
come.
Shaziman also gave his assur-
ance that the tariffs will not be
increased, but regulated strictly by
the government.
When asked what will happen if
the status quo remains in Selangor
where the state government con-
tinues operating as it is, Shaziman
said it will be hard for Selangor to
maintain the tariffs and the state
would eventually “bleed” finan-
cially.
Pengurusan Aset Air Bhd (PAAB),
a wholly-owned unit of Minister of
Finance Inc, is entrusted to take
over water assets in 11 states in
Peninsular Malaysia and Labuan
under the restructuring of the
country’s water and sewage.
Once the assets together with
the liabilities are transferred to
PAAB, it can then borrow on the
companies’ behalf.
PAAB needs the assets of the
companies before it could issue
bonds which would be used to im-
prove the water services industry.
States which have signed the
deal with PAAB include Malacca
and Negri Sembilan while Johor,
Kelantan, Pahang and Kedah are
expected to do so soon.
fle, which is expected to be made
after the Umno elections next
month.
Ong is unfazed by talk of a
plot to topple him, believing that
evil will not triumph over good.
He chided a certain indi-
vidual for planning for an EGM
because he was not given any
government post.
He lamented that while the
party is going all out to tackle
the economic issues plaguing
country, there are people in the
party who only have govern-
ment positions in mind and
would turn against the party
leadership when they cannot get
what they want.
Meanwhile, Nanyang Siang
Pau reported that Ong’s camp is
taking measures to pre-empt a
strike from the rival camp.
Ong’s men are said to be
sending out feelers to members
known to be loyal to deputy
president Datuk Seri Dr Chua
Soi Lek.
A division chief, who did
not want to be identified, said
Ong’s men were using the soft
approach – avoid making any
threat or coercion.
However, the Chua supporter
believed such approach would
not work, saying, “What we
want is for Chua to be seated
side by side with Ong, otherwise
there is no talk.”
The daily also said the anti-
Ong campaign hatched by Chua
was to be launched in June
or July but had to be brought
forward due to a change in situ-
ation.
It said Chua is extra cautious
with what he says now, follow-
ing the resurfacing of his sex
DVD lately.