Latest news with #waterTariff
Malay Mail
10-07-2025
- Business
- Malay Mail
SPAN still reviewing water tariff hike proposals from 10 states
KUALA LUMPUR, July 10 — The National Water Services Commission (SPAN) is still examining and has not finalised water tariff adjustment applications to review water supply service tariff rates from service operators in 10 states under its supervision. According to SPAN, until June 30, it has received applications from service operators in 10 states involving Penang, Perlis, Kedah, Kelantan, Terengganu, Selangor, Negeri Sembilan, Melaka, Johor and Pahang. 'All the applications are still being examined and have not been finalised,' it said, adding that this was following a statement made by Penang Chief Minister Chow Kon Yeow on July 8, regarding the proposed water tariff adjustment in the state. SPAN said the commission will ensure that every aspect is taken into account before any consideration is made to ensure the well-being of 27.2 million consumers and the ability of operators to continue providing services. — Bernama
Free Malaysia Today
08-07-2025
- Business
- Free Malaysia Today
Chow to seek delay in water tariff hike despite Cabinet review
Penang chief minister Chow Kon Yeow said the Cabinet is reviewing a proposed water tariff increase, but that he will ask for implementation to be pushed to mid-2026. GEORGE TOWN : Penang chief minister Chow Kon Yeow says he plans to request a delay to the proposed water tariff hike currently being reviewed by the Cabinet. 'Once it's approved, I will ask the federal government to defer the new tariff until the middle of next year,' he said at the launch of the Penang Water Supply Corporation's (PBAPP) RM5 billion sukuk programme today. Under federal water regulations, the National Water Services Commission requires a periodic review of tariffs by water operators. However, any actual increase still needs Cabinet approval and cooperation from state governments. Meanwhile, PBAPP's RM5 billion sukuk programme – the first of its kind by a state-linked water utility – aims to fund major infrastructure projects without overreliance on tariff hikes or bank loans. The sukuk was issued under an Islamic medium-term notes programme backed by a newly established sustainable finance framework, which has received a 'gold' rating from RAM Sustainability. The sukuk itself was awarded a top-tier AAA/Stable rating by RAM Ratings. PBAPP chief financial officer Mary Ann Harris said joint principal advisers and lead arrangers Maybank and UOB were waiving arranger fees 'in support of nation-building'. Funds raised will support initiatives such as the RM2.1 billion Water Contingency Plan 2030. Chow said PBAPP would also explore private financing and leaseback models to better manage costs over time. 'Whatever model we use, the bottom line is, we must repay. But if we're efficient and generate more income, it becomes manageable,' he said. He added that the first project to be funded through the sukuk would be the newly launched Mengkuang water treatment plant. 'Payment claims are already coming in, and we may begin disbursements from the first sukuk issuance soon. 'We've been discussing this sukuk programme for the past three years, and I'm glad we're finally making it a reality,' he said.
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.
