ASIA WATER IN BRIEF
- From: Vol 13, Issue 5 (May 2012)
- Category: Brief
- Region: Asia
- Country: China, Hong Kong, Malaysia and Singapore
- Related Companies: Anhui Guozhen, Asian Development Bank and Siemens
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South-east Asian club ASEAN has set up an infrastructure fund which began operations this month.
ASEAN member governments and the Asian Development Bank (ADB) have put up $485 million of starting equity for the fund. Water, road, rail, power and other infrastructure projects will be eligible for financing, and the fund is expected to lend to about six projects a year with a $75 million cap per transaction. The ADB will also provide co-financing for all AIF projects.
- Another case could soon be added to the legal swamp enclosing water supply in Malaysia’s capital region. Selangor state’s chief minister Khalid Ibrahim is now threatening to take federal minister Peter Chin Fah Kui to court if he refuses to take the dispute between the state and its water concessionaires over asset valuation to international arbitration, a power Ibrahim claims he has under the 2006 water services industry law. However, elections are due to take place in Selangor before the end of the year, which may change the game again.
- Hong Kong and Macau are both looking for alternative water sources to meet growing demand while diversifying supply risk. Hong Kong’s Housing Authority is investigating how to incorporate rainwater harvesting into the territory’s new housing development projects. Macau, meanwhile, plans to implement dual reticulation to allow for toilet flushing with reused water in new developments.
- The choice of higher-efficiency Siemens F-Class combined-cycle gas turbines for the 411MW power plant which will be co-located alongside Singapore’s largest desalination plant to be built at Tuas (318,500m3/d) has added an extra 18% to the original project cost. Project developer Hyflux will have to stretch its already exposed balance sheet even further to make up the shortfall.
- Anhui Guozhen Environment Protection Technology (GZE) has issued its draft listing prospectus for approval by the China Securities Regulatory Commission. GZE is planning to raise around RMB200 million ($32 million) an IPO in Shenzhen later this year, implying a market capitalisation of around RMB800 million ($127 million). The deal will dilute 25% shareholder Marubeni down to around 18.7%.