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Quarterly Report on Water Industry Developments in Asia - April 2004 April 2004
In this issue:
Australia
China
Malaysia
Singapore
Australia
- The Central Highlands Water authority in Australia will be selecting between the bids of United Utilities Australia and Earth
Tech for the proposed 25-year Design-Build-Finance-Operate project to upgrade the Ballarat North and Creswick Wastewater Treatment
Plants.
The project will be implemented within the Partnerships Victoria policy framework and cost approximately A$50 million (US$38.5
million). Upon completion of the upgrading, 2 billion liters a year of reclaimed wastewater from the two plants will be made
available for agribusiness purposes.
Central Highland Water is responsible for the current provisions of water and wastewater service, ranging from treatment and
delivery of drinking water to homes and the collection, treatment and disposal of sewerage and trade waste.
As part of the land-based effluents reuse program know as SmartCycle, this project will conform with Environmental Protection
Authority License Conditions and Reclaimed Water Guidelines for the development, construction financing and operation of sustainable
irrigates reuse enterprises.
China
- Central China's Hubei province is developing water conservation projects throughout the province by attracting investment
from private sources.
According to the provincial department of water resources, there are 392,000 water conservation and irrigation projects invested
by private capital, with the total value of over 4 billion yuan (about 484 million US dollars).
The majority of the private investment goes to small and medium-sized projects, of which 42 percent were water source projects
and water saving agriculture.
The private water conservation projects covering all water areas in Hubei.
- Construction-based Gadang Bhd ("Gadang") has decided not to proceed with a proposed investment in a waste water project in
Xiangcheng, China. Last November Gadang signed a memorandum of understanding with Xiangcheng County Government in China to
develop, construct and operate a waste water treatment plant in Xiangcheng county and to collect fees for a concession period
of 30 years.
Recently Gadang decided that after conducting a feasibility study on the treatment plant, Gadang would not proceed with this
investment."
The memorandum of understanding on the proposed investment lapsed on Feb 21.
Gadang estimates that the total investment cost for the project to be 20.67 million ringget. (1 usd = 3.8 ringget).
Malaysia
- As the Selangar Water Treatment Plant, located in Kota Tinggi, is scheduled to be completed and fully operational by end of
2004, State of Johor will no longer be dependent on Singapore's Public Utility Board ("PUB") for its supply of treated water.
The construction of the RM649 million facility which provides 160 million litres of water per day with a distribution pipeline
measuring 225km, will cater to local needs for years to come.
The plant is in its final stages of completion, which include installation and connection of pipelines to and from the plant
and other facilities.
By year end, all 18 PUB pipelines - which distribute treated water to Johor Baru, Kota Tinggi and Pontian - will be shut down.
Residents in the three districts have been receiving treated water through PUB pipelines and its treatment plants in Sungai
Skudai, Gunung Pulai and Sungai Johor for 45 years.
Upon completion, the project will be well positioned to even cater to the water supply needs of other states, in addition
to Singapore.
Between 2003 to 2005, treated water supply in Johor is expected to rise by between five and six per cent or 1,337 million
litres daily.
During that period, SAJ Holdings will spend about RM730 million to boost water supply through upgrading water capacity, improved
distribution and reducing loss of Non-Revenue Water.
- Syarikat Bekalan Air Selangor Sdn Bhd ("Syabas") plans to issue about 2 billion ringget worth of bonds before June 2004 to
finance the privatization of water supply services in Selangor state and the Federal Territories.
Syabas, which has been given approval to undertake the privatization, will be 30 percent owned by the Selangor state government
and 70 percent by Puncak Niaga Holdings Bhd.
The concession agreement for the privatization is being finalized and is expected to be signed soon.
- Salcon Trans Consortium, a 70:30 joint venture between Salcon Engineering Bhd and Trans MSB Sdn Bhd, has secured a 51.04 million
ringget 2-year contract from the Perak Water Board, to build the New Sungai Kinta Water Treatment Plant.
The contract was awarded under the Greater Ipoh Water Supply Scheme Phase 2. The report said Salcon Engineering, a wholly-owned
subsidiary of Salcon Bhd, is the lead partner in the consortium and in this project.
- Ranhill Utilities Bhd is negotiating to undertake overseas construction work in India on the Tamil Nadu water supply project
worth RM1.6 billion - and Turkey's Bodrum Peninsular water project worth RM660 million.
Ranhill Utilities plans to expand its expertise and services in water-related jobs across the region to increase its earnings
base and undertake the entire scope of water works from development and operations to maintenance.
Through subsidiary Ranhill (India) Pvt Ltd, Ranhill is attempting to tap the lucrative Indian water and sewerage works. It
has recently met with the water authorities personally to pitch its proposals. This included meetings with the Tamil Nadu
Water Supply and Drainage Board as well as the Chennai Metropolitan Water Supply and Sewerage Board.
Singapore
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