Media Statement by Dr. Ong Kian Ming, MP for Serdang, on the 24th of September, 2014
It was reported in The Edge on the 22nd of September that four companies have been shortlisted to build the Waste to Energy (WtE) plant in Taman Beringin, Kepong, namely UEM Environment Sdn Bhd, DRB-Hicom Bhd, Malaysian Resources Corp Bhd (MRCB) and Puncak Niaga Holdings Bhd. The Minister of Urban Well-Being, Housing and Local Government also was reported to have said that the award of this project will only be announced in June 2015 pending a Detailed Environmental Impact Assessment (DEIA).
There has been much speculation over the potential cost of this plant which will be built as a Private Financing Initiative (PFI). In order for the public, especially the rate payers in Kuala Lumpur, to properly assess the financial and environmental impact of this plant, the tender documents for this PFI must be made available publicly as soon as possible.
It is crucial for the tender documents to be disclosed so that we do not have a repeat of the lopsided concessionaire agreements such as the first generation Independent Power Producers (IPPs) and certain toll concession contracts which deliver supernormal profits to the concessionaire at the expense of ordinary Malaysians.
Important details which are in the tender documents include:
(i) Whether there is a waste guarantee of 1000 tons per day and the amount of compensation which will be paid to the concessionaire for any shortfalls in the amount of waste delivered
(ii) The cost of disposing the highly hazardous fly ash and bottom ash produced during the incineration process
(iii) Agreements for adjustments to the tipping fee
(iv) The content of the Municipal Solid Waste (MSW) which will be sent to the WtE plant e.g. whether the waste will be pre-sorted or not
In a press statement on the 15th of July, I asked the Minister to disclose the tender documents as per his promise in Parliament on the 26th of November, 2013, during the 2014 budget debates.
Now that these four firms have been shortlisted, it is even more urgent that the Minister fulfils his promise made in Parliament to disclose these tender documents. The failure to do so would mean that he has gone against his own word making him a liar.