Datuk Dr Peter Chin unaware that the conversion of the interest-free RM1.2 billion loan for the Mengkuang Dam expansion project into a grant and details of the Water Restructuring Agreement between the Federal Government and Penang State Government was disclosed publicly or revealed to outside parties

Media statement by Lim Guan Eng in Komtar, George Town on Saturday, 4^th June 2011:

Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui is unaware that the conversion of the interest-free RM1.2 billion loan for the Mengkuang Dam expansion project into a grant and details of the Water Restructuring agreement between the Federal government and the Penang state government was disclosed publicly or revealed to outside parties. This follows the press conference by State Barisan Nasional (BN) working committee chairman Datuk Dr Teng Hock Nan on 30 May 2011 in trying to score cheap political publicity that the grant of the RM1.2 billion loan shows that the Federal state government did not marginalise Penang. Teng had also showed detailed plans of the proposed expansion project.

This is a breach of the confidentiality as such agreements are secret in nature and highly confidential, as only either the state or the Federal government have the right to disclose the details of such an agreement. Teng should not behave that he is still part of the Penang state government as he was rejected by his Pulau Tikus voters and lost in the last general elections?

Unlike his President Tan Sri Koh Tsu Koon who took on a back-door appointment as Senator and Minister, Teng is also not holding any Federal government position. What right and on whose behalf is Teng representing in making such announcements that should only come from either the Federal or state government?

I had asked Peter Chin whether his Ministry had disclosed these details and expressed my unhappiness at such improper irresponsible and unprofessional disclosure by Teng during the signing ceremony by both Federal and state governments in Putrajaya witnessed by Prime Minister Datuk Seri Najib Tun Razak and myself. Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui confirmed that Teng did not represent his Ministry.

Teng as an experienced former state EXCO member should know that if anyone should make any disclosure, it should come from either the Federal or the state government not Teng who has no locus standi whatsoever. It is unbecoming, unprofessional and irresponsible for Teng to behave as something that he is not when he is now neither a state EXCO member nor a Federal government official. I shall be writing officially to Peter Chin to seek an investigation from him who authorised Teng to make such remarks.

The main benefits of the National Water Services Industry Restructuring Initiatives to Penang State government will be:

Relieved of repaying the RM 655.24 million water supply loan owing to the Federal Government, which will be repaid by PBAPP.
Penang State Government will be given a grant allocation of RM1.2 billion for the expansion project of Mengkuang Dam in Penang.
Federal Government will be fully responsible for the source work of water supply projects.
Relieve of the heavy financial burden to develop and upgrade water supply assets.
Enable PBAPP to focus solely on providing water treatment and distribution services and concentrate on achieving operational efficiencies, good quality water and services.
PBAPP can work towards full cost recovery and financial independence in the long term;
Retain control by the people of Penang over the determination of water tariffs rates in Penang.

The RM1.2 billion grant for the expansion project of Mengkuang Dam will be expedited from this migration exercise. Currently, Mengkuang Dam's capacity is 23 million cubic meters and with the expansion it will increase the dam capacity to 78 million cubic meters and be able to meet the state's water need until the year 2020.

This is an improvement of the previous terms offered to the previous state government as the state's outstanding loans of RM655.24 million, incurred during the BN state government, will now be subject to an effective zero interest rate. Further, the RM1.2 billion has also been converted to a grant instead of an interest-free loan that will be required to be repaid by the state government. Finally the state government retains control over the rate of water tariffs so that the people of Penang decides and not the Federal government.

*Lim Guan Eng, Penang Chief Minister