PAAB to raise funds

KUALA LUMPUR, Aug 28 (Bernama) -- The Finance Ministry-owned Pengurusan Aset Air Bhd (PAAB), which is in the midst of taking over the management of water assets from state governments, plans to go into capital market to raise funds to finance its capital projects in the longer term.This includes financing the take-over of the assets and liabilities of the state governments, Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik said Tuesday."The company has AAA rating which enables it to raise funds from anywhere, and not necessarily go for listing. It could be the bond market," he told reporters after the Fourth National Utilities Summit 2007 here.It was reported that about RM7.8 billion of debts are owed by water companies in the state governments, with Melaka and Negeri Sembilan recording debts exceeding assets."We are now negotiating with the state governments to surrender their water assets soon to PAAB," he said, adding that the water assets will then be leased back to the state governments but the rent will be determined according to their debt payments.PAAB will also take over the replacement of old water mains to maximise efficiency and ensure that water supplied is of high quality.Dr Lim said state governments are welcome to participate in the new water services regime, which will be enforced through the Water Services Industry Act next January.Johor and Selangor's privatised water companies have expressed interest in migrating to the new water services regime, he added.