Latest news with #PAAB
New Straits Times
6 days ago
- Business
- New Straits Times
Sanusi: Kedah water tariff hike to stay below 5 sen
ALOR STAR: The proposed water tariff revision submitted to the federal government will not burden consumers, with the increase expected to remain below five sen per cubic metre, said Menteri Besar Datuk Seri Muhammad Sanusi Md Nor. Sanusi said the application was formally submitted by Syarikat Air Darul Aman (Sada) in line with the mechanism set by the National Water Services Commission. "I'm not sure of the exact figure, but I believe it will be no more than five sen. Even the minimum rate may see only a slight increase," he said at a press conference after launching the logo for the 7th Kedah Darul Aman Sports Games at Wisma Darul Aman here today. "The last tariff hike was over a decade ago, around 2011 or 2012. Let's wait for the approval." Sanusi said over 60 per cent of Sada's operating costs are tied to electricity bills, which amount to RM128 million a year. He added that the situation was not unique to Kedah, as most water operators nationwide were struggling with rising treatment and maintenance costs. "The largest share of Sada's operational cost is electricity, followed by staff salaries, treatment chemicals and infrastructure maintenance. "If electricity tariffs increase while water tariffs remain stagnant, operators will be under financial pressure. Sada alone pays RM128 million a year just for electricity. That's 60 per cent of its operating cost. So when electricity rates rise every year, but water tariffs stay the same, operators are squeezed." He also touched on the regulatory framework under the Water Services Industry Act 2006, which transferred state water supply assets to Pengurusan Aset Air Bhd (PAAB) as part of efforts to restructure water-related debt. "Kedah previously had RM2.3 billion in water-related debt. Under the Water Services Industry Act, all assets were transferred to PAAB, and the state government now pays lease charges, which count as debt repayments. The state must also fully own its water operator." Sanusi dismissed claims that the state government planned to relinquish control of Sada, saying such a move would be legally impossible under the act.
Malay Mail
09-07-2025
- Business
- Malay Mail
Johor Regent hails RM991m water project to boost JS-SEZ supply, urges swift action to staff Pasir Gudang Hospital
JOHOR BARU, July 9 — Johor Regent Tunku Mahkota Ismail has expressed his appreciation following the approval of a new water supply infrastructure project worth RM991 million by Pengurusan Aset Air Bhd (PAAB), saying it would significantly boost the state's treated water distribution capacity. In a Facebook post yesterday, His Royal Highness said the 260 million litres per day (MLD) project, finalised via a Project Execution Letter dated July 7, 2025, would be crucial in strengthening supply especially within the Johor-Singapore Special Economic Zone (JS-SEZ). Looking ahead, the Regent said Johor is also targeting the development of raw water infrastructure to reach a capacity of 2,000 MLD — enough to meet statewide demand until 2060. This includes the Sungai Johor Riverside Water Reservoirs (TAPS) Project (200 MLD), the construction of the Sungai Sedili barrage and TAPS (600 MLD), and the Sungai Pontian barrage and TAPS (100 MLD), all approved under the 12th Malaysia Plan (12MP). 'These efforts are expected to ensure long-term water security for Johor's industrial, commercial and domestic sectors. New investors should not be concerned about future disruptions in water supply,' Tunku Ismail said in a Facebook post yesterday. He also touched on the upcoming opening of Pasir Gudang Hospital, calling on the Health Ministry to take immediate steps to deploy healthcare personnel to ensure the facility can operate at full capacity and adequately serve Johoreans. In addition, he urged the federal government to speed up the approval and hiring process for unresolved staffing shortages, which he said are contributing to overcrowding at key hospitals in the state — including Sultanah Aminah Hospital (HSA), Sultan Ismail Hospital (HSI), Temenggong Seri Maharaja Tun Ibrahim Hospital, and others facing manpower constraints.
The Sun
08-07-2025
- Business
- The Sun
Johor appreciates RM991m water project, strengthening treated water distribution capacity
JOHOR BAHRU: Johor Regent Tunku Mahkota Ismail has expressed his appreciation following the approval of a new water supply infrastructure project worth RM991 million by Pengurusan Aset Air Bhd (PAAB), which will strengthen the treated water distribution system in the state. His Royal Highness said the approval of the 260 million megalitres per day (MLD) project was finalised through a Project Execution Letter dated July 7, 2025. 'The project will strengthen the capacity of the treated water distribution system, especially in the Johor-Singapore Special Economic Zone (JS-SEZ),' he said in a Facebook post today. The Regent also announced that Johor is targeting the construction of raw water infrastructure of 2,000 MLD that can meet the water needs of the entire state until 2060. According to him, this includes the Sungai Johor Riverside Water Reservoirs (TAPS) Project (200 MLD), the construction of the Sungai Sedili barrage and TAPS (600 MLD), and the Sungai Pontian barrage and TAPS (100 MLD), which have been approved under the 12th Malaysia Plan (12MP). 'This measure is expected to be able to support the water needs of the industrial, commercial. and domestic sectors for the medium and long term. Therefore, new investors do not need to worry about any water supply disruptions in the future,' the Regent said. - Bernama
The Star
08-07-2025
- Business
- The Star
Proposal to delay water tariff hike will cost Penang govt RM40mil, says CM
GEORGE TOWN: The Penang Water Supply Corporation's (PBAPP) plan to delay water tariff increases by six months will cost the state government RM40mil, says Chief Minister Chow Kon Yeow. Chow, who is also PBAPP chairman, said the decision reflected the state's commitment to easing financial burdens on the people while continuing to invest in critical water infrastructure. "We do not want to implement it early next year; we hope to delay it to the middle of next year,' he told a press conference on Tuesday (July 8) after the launch of PBAPP's new RM5bil Islamic Medium-Term Notes (IMTN) Programme. Chow said IMTN represents an alternative funding avenue, opening up opportunities for investors to fund necessary water projects and help subsidise tariffs. He said PBAPP should not be judged solely on tariff rates, adding that the corporation is actively working to enhance efficiency, reduce operational costs, and implement essential infrastructure upgrades. These include booster pump stations and expanded pipe distribution networks, he added. Acknowledging the limitations of internal funding and cost-cutting, he said, PBAPP is tapping into private financing initiatives and working with Pengurusan Aset Air Berhad (PAAB) to fund large-scale projects. He said these efforts aim to ensure that PBAPP does not have to raise capital on its own. Under a leaseback model with PAAB, selected water infrastructure projects will be financed and repaid over a 30- to 45-year period. One such project is the Mengkuang Water Treatment Plant, which is being financed through sukuk issuance to cover contractor payments. Based on the Syariah-compliant Sukuk Wakalah structure, it will allow PBAPP to raise medium to long-term financing through Malaysian capital markets.
Malay Mail
08-07-2025
- Business
- Malay Mail
Chow says Penang would delay water rate hike until mid-2026
GEORGE TOWN, July 8 — The Penang Water Supply Corporation (PBAPP) plans to delay the implementation of a proposed water tariff increase for at least six months, should it be approved by the federal Cabinet, said Chief Minister Chow Kon Yeow. Chow, who is also the PBAPP chairman, said the move would cost the state RM40 million. 'We do not want to implement it early next year; we hope to delay it to the middle of next year,' he said at a press conference today, after the launch of PBAPP's new RM5 billion Islamic Medium-Term Notes (IMTN) Programme (sukuk). He explained that this initiative is part of a broader strategy to fund its infrastructure projects, especially those under the Water Contingency Plan 2030 (WCP 2030), without relying solely on tariffs. 'Today's ceremony represents another option to fund our capital and operational expenditure,' he said, noting that the company is diversifying beyond bank loans and water tariffs. 'We are also looking at other measures such as privately funded initiatives (PFI) to select contractors under a 'build, operate, and transfer' (BOT) model, so we do not need to raise upfront funds for that project.' He added that while Pengurusan Aset Air Berhad (PAAB) will finance some projects, the assets will be leased back to PBAPP over 45 years, requiring repayment. 'Whatever the option, we still need to pay back, even if we go for BOT,' he stressed. The newly launched RM5 billion IMTN Programme was established in collaboration with Maybank Investment Bank and United Overseas Bank (Malaysia) Berhad. Based on the Shariah-compliant Sukuk Wakalah structure, it will allow PBAPP to raise medium to long-term financing through the Malaysian capital markets. Chow said PBAPP initiated discussions on the sukuk programme three years ago. 'That's a strong vote of confidence from some of Malaysia's top banks — Maybank and UOB — who have come on board as joint principal advisers, lead arrangers, and lead managers,' he said. The core purpose of the programme is to raise funds for key water projects under the WCP 2030, reducing PBAPP's reliance on government loans and grants while establishing a scalable platform for future infrastructure financing, Chow said. 'This IMTN will offer Malaysians another way to invest in PBAPP beyond just buying PBA Holdings Bhd (PBAHB) shares,' Chow noted. He clarified that the full RM5 billion credit limit would not be drawn down at once. 'Just because the credit limit is up to RM5 billion doesn't mean PBAPP will suddenly issue RM5 billion worth of notes overnight,' he explained. 'The first issuance, planned for later this year, will be for a much smaller amount. The actual figure will depend on what's needed for specific projects.' The first project to be financed under this programme will be the Mengkuang Dam water treatment plant, he added. PBAPP's Sukuk programme has been assigned the highest credit rating of AAA/Stable by RAM Rating Services Berhad, while its Sustainable Finance Framework was awarded a 'Gold' rating by RAM Sustainability Sdn Bhd.
