YTL wins RM1bio Contract ?
May 8 2007
YTL Corp, owner of Wessex Water plc, has won a US$300 million (RM1.03 billion) government contract to clean up Malaysia’s polluted rivers, a first step in a bid to expand its water-treatment business throughout Asia. "There’s so much pollution; it’s a growth area, especially China," said Jason Chong, who helps manage US$600 million (RM2.05 billion) at UOB-OSK Management Sdn Bhd in Kuala Lumpur. "There’s lots of potential and the contract gives YTL a launching pad into Asia." YTL wants to use the technology of the UK-based Wessex to tap demand for quality water in Asia, where one-fifth of the population does not have access to safe water, according to the Asian Development Bank. In Malaysia, the Government is spending RM8.2 billion from 2006 to 2010 to improve the water supply, doubling the outlay of the previous period.Malaysia has 150 river systems with a combined length of 38,000km, according to the Department of Irrigation and Drainage website. Of 116 rivers monitored, 42 are rated clean, 61 slightly polluted and 13 polluted, it said. "Suddenly, Asia is moving like Europe," YTL chief executive officer Tan Sri Francis Yeoh said in an interview. "We can transfer this technology inexpensively to this country, and the Government is listening to us now." YTL’s water contract reflects its focus on Asia and the Middle East, where Malaysia’s biggest builder is seeking water, power and other infrastructure and utility contracts, Yeoh said."More exciting," said Yeoh, 52, "the same idea can be used for every river in Asia, even in China." YTL, based in Kuala Lumpur and controlled by Tan Sri Yeoh Tiong Lay’s family, has interests in property development, cement manufacturing, hotels, power generation and information technology.Almost half of group sales of RM5.5 billion last year was derived from the UK, according to data compiled by Bloomberg. The stock has risen 15 per cent this year, slower than the benchmark stock index’s 24 per cent gain.
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cK Views
First of all why offer the contract , what happen to the law enactment ? Catch those disposes toxic to the river and put them behind the bars instead of commercialising the offer. Come up with hefty fines.. enforce the rules, comeout with serious regulatories on companies breaking the law.
Another typical unreasonble decision. Instead of catching the real culprits who has cause the polution and take legal action, us the tax payers are now required to bear the extreamly high cost of cleaning of the rivers. RM 1 bil could have gone to more important development issues such as education and health. Just one though ponders me..fine we spend 1 bil to clean all the rivers up...but what about maintaining the cleanliness of the river...how do we ensure that the rivers will not be polluted back again and 10 years from now spend another 1 bil or even more to clean them back again. To my opinion...its all about enforcement...no point if we implement all kinds of things..spend so much money...but there is no enforcement, maintenance and monitoring. Simple example is the recent putrajaya bulding leaks and damages. Anyway just my 2 cents worth of through. Cheers!!!!
Comment by Fabian — May 16, 2007 @ 10:47 am