Best of our wild blogs: 4-5 Apr 14

25 years later – NOTHING HAS CHANGED
from The Green Volunteers

Sunbird, Bee And the Drumstick Tree
from Bird Ecology Study Group

Butterflies Galore! : Malayan
from Butterflies of Singapore

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Malaysia: Pengerang Integrated Complex gets green light

PIC, RAPID ‘green light’ to boost Malaysia’s O&G sector
Jonathan Wong and Yvonne Tuah Borneo Post 5 Apr 14;

KUCHING: Petroliam Nasional Bhd (Petronas) has recently announced that it has approved the Final Investment Decision (FID) for the development of the Pengerang Integrated Complex (PIC) which comprises of the US$16 billion Refinery and Petrochemical Integrated Development (RAPID) and associated facilities.

Overall, analysts pegged positive sentiments on the ‘green light’ to the project, with some stating that the project would further strengthen Petronas’ position and stimulate Malaysia’s oil and gas (O&G) sector.

CIMB Investment Bank Bhd’s research arm (CIMB Research) in a report, commented; “We are thrilled that PIC and Rapid, a cornerstone project of the government’s Economic Transformation Programme (ETP), will progress as scheduled with no investment cutbacks.

“The project will further strengthen Petronas’s position as a key player in the Asian chemicals market, focusing on key growth areas of differentiated and specialty chemicals and capturing the growing automotive, pharmaceutical and consumer products sectors.

“Domestically, the project will contribute towards meeting the growing demand for petroleum products and Euro 4M and Euro 5 specification fuels.”

Similarly, the research arm of Public Investment Bank Bhd (PublicInvest Research) in a separate report, viewed that the initiative of the project is expected stimulate domestic O&G production, growth in downstream ventures and to make Malaysia the No.1 hub for oil field services while exploring alternative energy sources.

However, MIDF Amanah Investment Bank Bhd’s research firm’s (MIDF Research) analyst Aaron Tan cautioned that although the development is a positive catalyst in the industry, it remains cautious as there are some unresolved near term teething problems such as the relocation of villages and settlements, relocation of Muslim and Chinese cemeteries, sporadic land acquisitions and water supply issues.

In addition, Tan highlighted, “Apart from these short term stumbling blocks, a greater risk would be the potential construction of the Kra Canal (now known as the Thai Canal) which will pass through southern Thailand.

“The length of the proposed canal could range from a mere 50 kilometres to 100 kilometres, bypassing over 1000 kilometres distance around Peninsula Malaysia and Singapore.

“Recently, media sources reported that three Chinese firms have formed a work team to start preliminary operational activities on this canal.

“The Chinese firms are Sany Heavy Industry Co Ltd, Xuzhou Construction Machinery Group Co Ltd, and Guangxi Liugong Machinery Co Ltd.”

Nevertheless, Tan observed that while the construction of the PIC will not directly benefit most of the Bursa-listed O&G players as most are upstream service providers, the project would benefit oil and gas civil contractors and manufacturer such as Dialog Group, KNM Group, Muhibah Engineering and Eversendai, amongst other.

In a separate report, Ta Securities Holdings Bhd’s research arm (Ta Research) highlighted that direct beneficiaries of PIC include Petronas Chemicals (PChem) on the back of significant new refining and petrochemicals capacity from RAPID. It also said that Petronas Gas will also benefit from increased volumes from the new regasification terminal within PIC.

However, earnings for PChem will only materialise from 2019 onwards upon startup of the refinery said Ta Research, noting “we believe that PChem should not encounter difficulties in funding RAPID’s capital expenditure (capex) requirements given its robust cash flow generation capability, strong balance sheet that is devoid of debt, conservative dividend policy, and chunky cash pile of RM10.1 billion.”

Indirect beneficiaries of RAPID include EPCIC contractors, fabricators, and O&G equipment suppliers, including SapuraKencana, MMHE, TH Heavy Engineering, Pantech Group, KNM Group, and so forth.

These contractors, whom will be involved in PIC’s construction phase, will be first to benefit from order flows to fill their respective orderbooks. “We understand that completion of RAPID in 2019 coincides with the period where petrochemicals prices are expected to experience an upcycle. Therefore, this will provide a much needed boost to PChem’s earnings.”

To note, Petronas’ partners with interests in RAPID, include Evonik Industries AG, Italy’s Versalis SpA, Japan’s Itochu Corp, and Thailand’s PTT Global Chemical PCL, which will announce their respective FIDs in due course.

Ta Research explained that PIC will be built on a 6,242-acre site, and comprises part of the larger Pengerang Integrated Petroleum Complex (PIPC). PIC consists of a 300,000 barrels per day (bpd) refinery and a petrochemical complex with a combined production capacity of 7.7 million tonnes per annum (tpa).

Petrochemicals that will be produced include differentiated and specialty chemicals products such as synthetic rubbers and high grade polymers.

It further added that PIC will commence construction upon full handover of the project site by the Johor state government. Based on current progress, the refinery will likely commence operations by early 2019.

Upon completion, PIC will require over 4,000 employees at its operational stage.

“In–line with our expectations, RAPID’s project value was downscaled to US$16 billion from US$20 billion announced earlier. However, this is partially offset by investments in associated facilities worth US$11 billion,” said Ta Research.

Petronas in a press release, said that the PIC is part of the larger PIPC proposed and promoted by the Johor.

“With its strategic location along one of the world’s busiest shipping lanes and its proximity to international trading hub, the PIPC is well positioned to be the next regional downstream O&G industrial hub,” it said.

Petronas' Rapid gets RM89bil investment, one-year delay
by john loh The Star 4 Apr 14;

PETALING JAYA: Petroliam Nasional Bhd (Petronas) has green-lit its much-awaited final investment decision (FID) for the Pengerang Integrated Complex (PIC) in south Johor with a commitment of US$27bil (RM88.56bil), but the project will start up a year later than expected in 2019.

The FID marks a "significant milestone" for PIC, of which the Refinery and Petrochemical Integrated Development (Rapid) is a key component, Petronas said in a statement yesterday.

Rapid, an anchor project of the Economic Transformation Programme, is estimated to cost about US$16bil (RM52.48bil) and its associated facilities, US$11bil (RM36.08bil).

But based on current progress, Petronas acknowledged that the refinery would only be commissioned by early 2019.

“The FID is a critical stage gate in our decision-making process. Petronas undertook a rigorous review of the project, including independent third-party assessments to ensure it meets our criteria for long-term profitable and sustainable growth,” president and group CEO Tan Sri Shamsul Azhar Abbas said.

“This decision is in line with our commitment to capital discipline, and with the board’s approval we look forward to progressing the development of the project as planned.

“We will continue to work closely with the federal and Johor state governments to ensure the project’s smooth implementation.

“In a relatively condensed period of time, we have accomplished a lot of work in establishing an excellent base to move forward with confidence to implement our plans.”

The massive project, located at the southern most tip of the peninsula and just 10km from Singapore’s east coast, is understood to have been held up by land acquisition issues, with Petronas facing opposition from fishermen and local residents.

The party solely responsible for the relocation of villages and some 3,000 Chinese and Muslim graves is the state government.

Petronas would also have to procure a stable supply of raw water by building a new dam and 88km of pipelines.

The state-owned oil firm has twice delayed its FID for Rapid, Malaysia’s largest liquid-based green-field downstream development. Its start-up was originally scheduled for late-2016.

Still, the decision to go ahead means Petronas will not have to wait another decade to ride the next upcycle in the petrochemical industry.

According to Petronas, its partners in PIC will announce their respective FIDs in due course.

It had previously inked agreements with Germany’s Evonik Industries AG, Italy’s Versalis SpA, Japan’s Itochu Corp, and Thailand’s PTT Global Chemical PCL, although the latter said in February it was pulling out of Rapid.

French firm Technip SA has been appointed the front-end engineering and design contractor for the complex.

PIC is scheduled to commence construction upon the full hand-over of the project site to Petronas by the Johor state government.

“The project would further strengthen Petronas’ position as a key player in the Asian chemicals market, focusing on key growth areas of differentiated and specialty chemicals and capturing the growing automotive, pharmaceutical and consumer products sectors,” the group said.

Domestically, PIC is expected to contribute towards meeting the growing demands for petroleum products and Euro 4M and Euro 5 specification fuels.

Developed within a 6,242-acre site, PIC is to consist of a 300,000 barrels per day refinery and petrochemical complex with a combined capacity of producing 7.7 million tonnes per annum of various grades of products, including differentiated and specialty chemicals products such as synthetic rubbers and high-grade polymers.

The project will also see the development of a host of associated facilities such as a raw water supply facility, power co-generation plant, liquefied natural gas regasification terminal and other ancillary facilities.

At the peak of its construction, Petronas said PIC will employ a workforce of about 70,000 people with varying skills and disciplines. When operational, PIC will require over 4,000 employees.

PIC forms part of the Pengerang Integrated Petroleum Complex, which is envisioned as the next regional downstream oil and gas industrial hub.

Petronas Reaches Final Investment Decision For Pengerang Integrated Complex
Bernama 3 Apr 14;

KUALA LUMPUR, April 3 (Bernama) -- The Petronas Board of Directors has approved the Final Investment Decision (FID) for the development of the Pengerang Integrated Complex (PIC) in Johor.

The FID, approved today, marks a significant milestone in the progress of the proposed PIC, which comprises a world-scale Refinery and Petrochemical Integrated Development (RAPID) and other associated facilities.

RAPID is estimated to cost about US$16 billion (US$1=RM3.28) while the associated facilities will involve an investment of some US$11 billion.

"The FID is a critical stage gate in our decision-making process," Petronas President and Group Chief Executive Officer Tan Sri Shamsul Azhar Abbas said in a statement today.

Petronas, he said, undertook a rigorous review of the project, including independent third party assessments, to ensure it meets our criteria for long-term profitable and sustainable growth.

"This decision is in line with our commitment to capital discipline, and with the Board's approval we look forward to progressing the development of the project as planned," he said.

Shamsul Azhar said Petronas would continue to work closely with the Federal and Johor state governments to ensure the project's smooth implementation.

"In a relatively condensed period of time, we have accomplished a lot of work in establishing an excellent base to move forward with confidence to implement our plans," he said.

Subsequent to Petronas' decision, the partners' respective FIDs will be announced in due course upon the approval of their respective boards.

The PIC is scheduled to commence construction upon the full hand-over of the project site to Petronas by the state Government.

Based on the current progress, the project is poised for its refinery start-up by early 2019.

The project will further strengthen Petronas' position as a key player in the Asian chemicals market, focusing on key growth areas of differentiated and specialty chemicals and capturing the growing automotive, pharmaceutical and consumer product sectors.

Domestically, the PIC will contribute towards meeting the growing demand for petroleum products and Euro 4M and Euro 5 specification fuels.

Developed within a 2,521.8-hectare site, the PIC will consist of a 300,000-barrels per day refinery and a petrochemical complex with a combined capacity of producing 7.7 million tonnes per annum of various grades of products including differentiated and specialty chemicals products such as synthetic rubbers and high-grade polymers.

The project will also see the development of a host of associated facilities namely raw water supply facility, power co-generation plant, liquefied natural gas regasification terminal and other ancillary facilities.

At the peak of its construction, the PIC project is expected to have a workforce of about 70,000 people with varying skills and disciplines.

In its operational stage, the PIC will require over 4,000 employees.

The PIC is part of the larger Pengerang Integrated Petroleum Complex (PIPC) proposed and promoted by the Johor state government.

With its strategic location along one of the world's busiest shipping lanes and its proximity to international trading hub, the PIPC is well positioned to be the next regional downstream oil and gas industrial hub.

-- BERNAMA

Petronas' PIC Project Seen As Vital For Country's Downstream Sector
Bernama 4 Apr 14;

KUALA LUMPUR, April 4 (Bernama) -- Petronas' Pengerang Integrated Complex (PIC) project in Johor is vital for the country's downstream sector, said analysts.

"It makes sense for the country to refine its own crude oil and produce higher value-added petrochemical products, to better manage our oil and gas resources, especially with the expected increase in production from the various upstream initiatives.

"Despite being the 29th largest crude oil producer in the world, we export and import almost the same amount of refined petroleum products," Hong Leong IB Research said in a statement on Friday.

With the PIC project, the research house said the country's total refining capacity would increase to 935,300 barrels per day (bpd), from the current 635,000 bpd, while petrochemical related products are expected to increase from 2.6 million metric tonnes per annum (MTA) to 6.5 MTA.

Meanwhile, Maybank IB Research said Petronas needs to diversify its downstream business to retain productive investments in Malaysia, as the subsidy burden has been partly lifted from Petronas' shoulders with the government's ongoing fiscal measures, which include subsidy rationalisation.

The PIC will comprise a world scale Refinery and Petrochemical Integrated Development (RAPID) and other associated facilities.

Maybank IB Research said the final investment decision by Petronas's board for PIC to go ahead, although the RAPID project has been scaled down to US$16 billion (US$1=RM3.28) from the earlier proposed US$20 billion, is crucial and key to kick-starting the major project.

"This mega project will have massive multiplier and spin-off effects, with the creation of a strategic petrochemical and refinery hub in Asia, to an oil trading hub, and potentially a new crude benchmark," said Maybank IB Research in a statement Friday.

The research houses are maintaining a positive stance on the oil and gas sector.

Hong Leong IB Research sees onshore fabricators/process equipment providers like KNM, Muhibbah, Eversendai, MMHE, Pantech and downstream players like Dialog, Petronas Chemicals and Petronas Gas with the potential to leverage on the RAPID project.

Maybank IB Research says Dialog is a prime beneficiary, adding Petronas Chemical could participate in the petrochemical operations and refineries.

"MPHB and IJML have large land exposure next to RAPID and will gain from the rise in commercial land values there," it said.

Stocks that are poised to benefit from the mega project are Dialog, WCT, IJM Corp and MPHB, with target prices of RM3.90, RM2.55, RM6.75 and RM2.42, respectively, it added.

-- BERNAMA

Johor State To Render Cooperation To Ensure Rapid's Success
Bernama 4 Apr 14;

BATU PAHAT, April 4 (Bernama) -- The Johor government will extend its full cooperation to ensure the success of the mammoth US$16 billion Pengerang Integrated Complex (PIC) project.

Menteri Besar Datuk Seri Mohamed Khaled Nordin said the state government would create a conducive environment and ensure adequate skilled work force for the region's oil and gas industry.

"Petronas has invested heavily in the project and I welcome the final investment decision (FIC)," he was commenting on the move reached yesterday by the Petronas board for the PIC project after opening the 'Road to MAHA' road show at Penggaram Square here today.

The road show is aimed at promoting the Malaysian Agriculture, Horticulture and Agrotourism Exhibition to be held for ten days beginning Nov 20 in Serdang.

"We are also in talks with Petronas to create business opportunities for the local community in order for them to benefit from the development," he said.

Mohd Khaled said the FIC marked an important milestone in the development of PIC that included the Refinery and Petrochemical Integrated Development (RAPID) project and other facilities.

It was reported yesterday that the PIC project would continue despite the RAPID project being scaled down to US$16 billion from US$20 billion estimated earlier while the development of other facilities would involve an investment of US$11 billion.

The PIC, sprawled over a 2,521.8 hectare site, will have a refinery and petrochemical complex with a capacity to process 300,000 barrels per day and a combined production capacity of 7.7 million tonnes per annum of various grades of products, including specialty chemicals and products as diverse as synthetic rubber and high-grade polymer.

The project's development will also see related facilities such as untreated water supply, power co-generation plant and other ancillary facilities.

At the peak of its construction, the project would have employed about 70,000 workers of diverse skills and disciplines.

Meanwhile, Mohamed Khaled said the state government would set up a petroleum academy, in collaboration with Prestariang Technology Sdn Bhd, to create skilled workers for the oil and gas industry.

-- BERNAMA

Green light for Rapid
KAMARUL YUNUS New Straits Times 3 Apr 14;

MAMMOTH PROJECT: Petronas’ US$16b development in Johor set for refinery start-up by early 2019

THE US$16 billion (RM53 billion) Refinery and Petrochemical Integrated Development (Rapid) in Pengerang, Johor, will proceed as planned, ending concerns that the mammoth project will be scrapped due to the withdrawal of several potential partners.

Petroliam Nasional Bhd (Petronas) said yesterday its board had approved the final investment decision (FID) for the development of the Pengerang Integrated Complex (PIC), which
includes Rapid and other associated facilities’ development.

“The FID marks a significant milestone in the progress of the proposed PIC, which comprises a world-scale Rapid and other associated facilities,” Petronas said in a statement.

Rapid is estimated to cost about US$16 billion, while the associated facilities will involve another US$11 billion in investments.

The national oil corportaion has signed heads of agreement with Italy’s Versalis, Japan’s Itochu and Thailand’s PTT Global Chemical to build specialty chemical plants within Rapid.

Germany’s Evonik has joined the project after BASF pulled out, citing differences in business strategies.

But there were also reports that Taiwan’s KuoKuang Petrochemical Technology and PTT Global Chemical had decided to pull out of the project.

Petronas president and group chief executive officer Tan Sri Shamsul Azhar Abbas said the FID is a critical stage gate in the group’s decision-making process.

“Petronas undertook a rigorous review of the project, including independent third-party assessment, to ensure it meets our criteria for long-term profitable and sustainable growth.

“This decision is in line with our commitment to capital discipline, and with the board’s approval, we look forward to progressing the development of the project as planned,” he said.

The partners’ respective FIDs will be announced in due course upon the approval of their respective boards, Shamsul said.

Construction of the PIC is scheduled to begin upon the full handing-over of the project site to Petronas by the Johor government.

“Based on the current progress, the project is set for its refinery start-up by early 2019,” Petronas said.

The project will further boost Petronas’ position as a key Asian chemical market player, focusing on key growth areas of differentiated and specialty chemicals, and capturing the growing automotive, pharmaceutical and consumer products sectors.

Domestically, the PIC will contribute towards meeting the growing demands for petroleum products and Euro 4M and Euro 5 specification fuels.

Developed within a 2,526ha site, PIC will consist of a 300,000-barrel-per-day refinery and a petrochemical complex with a combined yearly production capacity of 7.7 million tonnes of various grades of products.

The PIC is part of the larger Pengerang Integrated Petroleum Complex (PIPC) proposed and promoted by the Johor government.

With its strategic location along one of the world’s busiest shipping la-nes and its proximity to international trading hub, the PIPC is well-positioned to be the next regional downstream oil and gas industrial hub.

Pengerang Integrated Petroleum Complex (PIPC)
Malaysia Petroleum Resources Corporation website (as at 7 Apr 14)

The focus on oil and gas projects, arising from the Economic Transformation Programme, will create a more dynamic and progressive oil and gas industry in Malaysia. Malaysia companies will be able to partake with local and foreign investors to invest in new technologies, new products as well as create countless job opportunities as several of these petrochemical projects take off in the near future.

The Pengerang Integrated Petroleum Complex (PIPC) is one big step in creating value to the downstream oil and gas value chain in Johor. Sited in Pengerang, it is one of the largest pieces of investments in Pengerang district and located on a single plot measuring about 20,000 acres. The project will house oil refineries, naphtha crackers, petrochemical plants as well as a liquefied natural gas (LNG) import terminal and a regasification plant.

In PIPC, oil refining facilities will add value to imported crude oil via the Pengerang Independent Deepwater Petroleum Terminal (PIDPT). New high-value and high-demand products and by-products, such as polymers, pharmaceutical products and plastics, will be created from the refined feedstock. In creating these products, Malaysia’s petrochemical complexes will be able to generate greater value and investments from its oil and gas sector.

As of January 2013, two major catalytic projects have been committed within the PIPC area. The RM5 billion Pengerang Independent Deepwater Petroleum Terminal (PIDPT) is a joint-venture between DIALOG Group of Malaysia, Royal Vopak of Netherlands and Johor State Secretary Incorporated (SSI). Construction of Phase 1 of the project has already started and is scheduled for completion by Q1 2014 and Phase 2 land reclamation is in progress. The total storage capacity available at PIDPT is planned for five million cubic metres by the year 2020.

The second mega-project within PIPC is PETRONAS’ RM60 billion Refinery and Petrochemical Integrated Development (RAPID) Project. The RAPID project site preparation is in progress and is expected to be commissioned by 2016. RAPID will have a 300,000 bbl. per day refining capacity while additional petrochemical plants will generate value to petroleum products produced in RAPID.

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Singapore offers to host regional crisis coordination centre

Channel NewsAsia 4 Apr 14;

SINGAPORE: Singapore’s Minister for Defence Dr Ng Eng Hen has offered Changi Command and Control (C2) Centre to host a regional Humanitarian Assistance and Disaster Relief (HADR) coordination centre.

The offer, made at the ASEAN-US Defence Ministers' informal meeting on Friday, was supported by the ministers.

Singapore's Ministry of Defence (MINDEF) said in a statement that in discussing ASEAN's HADR efforts in the region in the wake of Typhoon Haiyan, the ministers emphasised the need for militaries to work more closely together to strengthen the region's HADR capabilities.

The ministers noted that a regional HADR coordination centre, modelled after the Information Fusion Centre (IFC) in the Changi C2 Centre, would allow the militaries to respond speedily and effectively to a disaster situation.

Dr Ng said: "In the discussions, we realised that what was really needed was a crisis centre that was stood up all the time, which could be scaled up when the scale of the disaster required, because one of the problems with humanitarian or natural disasters is you don't know when it is going to hit next, and you don't know how large it is. And you don't know whether it will overwhelm the capacity or not.

“We actually have such a centre. And we have set it up in 2007, 2008, and we called it Information Fusion Centre in Changi. It was set up primarily then for maritime security."

During the meeting on Friday, the ASEAN defence ministers also welcomed the US' continued engagement in the region and its active participation in the ASEAN Defence Ministers Meeting-Plus (ADMM-Plus).

The ministers noted the important role the ADMM-Plus plays in strengthening practical cooperation amongst the militaries and supported the conduct of an ADMM-Plus joint counter-terrorism and maritime security exercise to be held in conjunction with the 3rd ADMM-Plus in Malaysia in 2015.

The ministers also discussed international security issues, including developments in Ukraine, and the need to respect international law, sovereignty and territorial integrity.

Dr Ng is in Honolulu, Hawaii to attend the ASEAN-US Defence Ministers' informal meeting from 2 to 4 April 2014 (Singapore time) at the invitation of US Secretary of Defence Chuck Hagel.

As part of the programme, the ASEAN defence ministers visited the Inouye Regional Centre for a roundtable discussion on HADR.

They were also hosted to a luncheon by Commander Pacific Command Admiral Samuel Locklear.

- CNA/xq/ms


Singapore offers Changi facility as ASEAN disaster response centre
Today Online 5 Apr 14;

HONOLULU — The Republic has offered its Association of Southeast Asian Nations (ASEAN) partners the use of its command and control centre in Changi to help coordinate responses to natural disasters, given the number of catastrophic events in the region over the past decade or so.

The offer, which was made yesterday at an informal ASEAN-United States Defence Ministers’ meeting, received support from the various countries, Singapore’s Ministry of Defence (MINDEF) said in a statement.

MINDEF also said the ministers noted that a regional humanitarian assistance and disaster relief coordination centre, modelled after the Information Fusion Centre (IFC) in the Changi facility, would allow the militaries to respond speedily and effectively to a disaster.

The three-day meeting ended yesterday. On the first day, US officials had offered to help ASEAN countries prepare for the devastating effects of climate change, urging stronger cooperation among armies and emergency agencies.

In a media interview, Defence Minister Ng Eng Hen said: “We were obviously struck within the last decade (by) how many natural disasters there were ... the Indian Ocean tsunami in 2004, Cyclone Nargis in 2008, Sichuan earthquake, the tsunami in Japan ... and of course Typhoon Haiyan in the Philippines.”

Singapore responded to each of these disasters by providing assistance or relief efforts. Based on its experience, it has recognised that in the first 24 or 48 hours after a disaster, “it is very difficult for the affected country to be able to set up a (command and control centre) for the very reasons that they are the ones hit”, Dr Ng said.

He added that during the dicussions, the ministers realised what is really needed is a crisis centre that is operational and can be scaled up when necessary.

“One of the problems with humanitarian or natural disasters is that you don’t know when it is going to hit next, and you don’t know how large it is and you don’t know whether it will overwhelm the capacity or not, or all of the above,” said Dr Ng.

The IFC, which was inaugurated in 2009, was primarily set up to share information on maritime security, keeping an eye on piracy and the shipping of weapons.

It has a network of 13 military navies and 51 civilian shipping companies globally. The centre also has essential infrastructure to allow an affected country to plug in all the information that various agencies would bring to bear when such a crisis occurs and make a coherent picture that everyone can see, said Dr Ng.

Last month, the centre was deployed to help in the search for the missing Malaysia Airlines Flight MH370, with the Singapore Armed Forces alerting the network to report any unusual sightings in the designated search areas for the aircraft.

Given the support of ASEAN member states on offer, the Republic will flesh out the proposal. “We’ll set it up and when it’s ready, we’ll let others know,” said Dr Ng.

WITH AGENCIES

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Cities face crisis in urban transport, study warns

Neo Chai Chin Today Online 4 Apr 14;

SINGAPORE — Urban transport systems around the world are far from perfect, with even oft-cited top cities such as Hong Kong and Copenhagen having significant potential for improvement, said a recently released report that ranked Singapore sixth out of 84 cities for urban mobility.

Warning of a “looming crisis” as more of the world’s population move to cities and as travel habits change, the study found that on average, less than half the potential of urban mobility systems is unleashed today. Hong Kong emerged top in the index, with a score of only 58.2 out of a possible 100. Singapore scored 55.6, trailing behind Stockholm, Amsterdam, Copenhagen and Vienna.

The index was developed by global management consultancy Arthur D Little, which also worked with the International Association of Public Transport to recommend strategies to improve the cities’ urban transport systems.

The 19 indicators of the urban mobility index included the financial attractiveness of taking public transport, the proportion of trips made on public transport, density of the cycling path network, car- and bicycle- sharing performances, as well as traffic-related fatalities and transport-related carbon-dioxide emissions.

Singapore’s public transport system is highly developed, said the report. It fared relatively well among the top 11 cities with an above-average score for proportion of trips made on public transport, the number of vehicles per capita and in smart-card penetration, but less so in traffic-related fatalities, bike- and car-sharing and transport-related emissions. Singapore’s traffic-related fatalities was, in fact, the highest among the top 11 cities with 32.5 deaths per million citizens, the index showed.

Innovative solutions are already available, but operating environments are too fragmented and hostile to innovation, noted the report, which was released earlier this year.

“Moreover, a lot of mature cities do not yet have a clear vision and strategy on how their mobility systems should look in the future,” the report said. “In all too many cases, urban mobility plans look like Christmas wish lists with no clear reflection of the synergies or incompatibilities between the initiatives.”

For cities with mature urban mobility systems such as Singapore, Hong Kong and Seoul, the next step “must be to fully integrate the travel value chain to foster seamless, multi-modal mobility, while ensuring ‘one face to the customer’ and to increase the overall attractiveness of public transport by service extension”, it said.

Transport experts here TODAY spoke to felt that Singapore’s challenge lies in getting more people to take public transport and that the Republic could innovate more in areas of car- and bicycle-sharing and encouraging greater adoption of “green” vehicles.

Innovation can take the form of more radical shifts for some parts of the transport system — policies to promote bike- and car-sharing, for instance — and less dramatic changes that tap informatics to improve efficiency of the current system, said Nanyang Technological University’s Associate Professor Michael Li.

“Can innovation help some people switch from private to public transport, and … can we provide innovative solutions for particular groups such as the elderly or people with mobility challenges?” asked Assoc Prof Li, who does transport economics and operations research.

National University of Singapore’s Associate Professor Lee Der Horng said the frequency of bus and train arrivals could improve with the purchase of more trains and buses by public transport operators. But he disagreed with SMRT’s decision announced on Wednesday to buy double-decker buses, citing recent analysis of ez-link card data that showed double-decker buses contribute more to bus bunching during peak hours than single-deck buses.

Together with his students, Assoc Prof Lee found that dwelling time, which is the time a bus takes to load or unload passengers at a bus stop, was longer for double-decker buses than single-deck buses, with a fixed number of people boarding and alighting.

The transport researcher felt that Singapore’s approach to cycling as a mode of transportation has been conservative and that policies for low-emissions and electric vehicles are not attractive enough.

The report said a successful urban mobility strategy needs to satisfy the needs of people and businesses, as well as increase the competitiveness of a country or region. It also needs to consider the interests of both public and private transport, passenger mobility and goods mobility, motorised and non-motorised transport and vehicles that are parked as well as those on the move.

On Hong Kong, the report noted that it is one of the most crowded cities in the world. Nevertheless, its public transport network is also one of the most efficient, with nine in 10 trips by commuters made on foot or by public transport. “Hong Kong’s transport system is a multi-modal network based on rail transport supported by bus, minibus, tram, ferries and taxis,” the report said. “The network is well integrated and the Octopus smart card allows customers to use all modes of transport and to pay for parking, shops and leisure facilities.”

A hypothetical best-in-class system would be as affordable as in Hong Kong and with as few vehicles, the report said. It would ensure air as pure as Stockholm’s, promote cycling like in Amsterdam, be as safe as Copenhagen, have the bike-sharing system of Brussels and Paris and have public transport services as frequent as the London Tube, among other characteristics.

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Malaysia: Rationing in 2 Perak districts

New Straits Times 3 Apr 14;

IPOH: A total of 23,719 Perak Water Board consumers in Taiping and Kamunting, some 80km north of here, will face a two-week water rationing exercise, which kicks off today.

Menteri Besar Datuk Seri Dr Zambry Abd Kadir said the measure was taken after obtaining approval from the National Water Service Commission and was made because of the dwindling water supply in the two areas. The rationing exercise would last until April 16.

"Though known for being the wettest town in the country, Taiping, too, has been badly affected by the hot and dry season.

"The supply of water has dropped from 35 million litres a day to 26 million litres a day last week," he said in a press conference held on the sidelines of the Perak State Assembly yesterday.

Present was Perak Water Board general manager Datuk Mohd Yusof Mohd Isa, and Taiping member of parliament and Kepayang state assemblyman, Nga Kor Ming.

Although the dry season affected all water catchment areas in the state, those in Taiping were quite badly affected, Dr Zambry said, adding there was no supply disruption in the rest of the state.

Penang folk to pay more to prevent water wastage
BALVIN KAUR New Straits Times 3 Apr 14;

'STOP WASTING WATER': They are the biggest water consumers in country, says CM

GEORGE TOWN: PENANG folk will soon have to dig deeper into their pockets to pay their water bills.

According to Chief Minister Lim Guan Eng, this was because many Penangites were wasting water, which he believed could lead to scarcity, as seen in some states.

Lim, who is also Penang Water Supply Corporation (PBAPP) chairman, said the state government was left with little choice but to raise the water tariff.

"We have tried many ways to check against wastage but failed. Water usage by Penangites is the highest in the country even though our rates are the cheapest, at 31 sen per 35,000 litres," he said after chairing the weekly state executive council meeting here yesterday.

Lim said Penangites used an average of 311 cubic litres of water daily compared with the people in Sabah and Perlis, whose daily consumption stood at 115 and 241 cubic litres, respectively.

Penang's water consumption was 50 per cent higher than the national average rate of 212 cubic litres per person daily.

Lim said the proposed water rate hike, which is still being worked out, would not be a burden.

"PBAPP, which had recommended the water tariff hike, is conducting a study and will recommend the new rates.

"The proposed rates would be submitted to the National Water Services Commission for approval.

"I assure the people the new rates will be lower than the national average of 66 sen for the first 35,000 litres."

Asked if the new rates would be implemented by year's end, he said: "That is too long. It will be sooner."

Asked whether his earlier announcement that Penang would consider water rationing still stood, Lim said it was now not necessary.

However, he said there was a need to implement a contingency plan to avoid water rationing in the future if there should be an extended dry season.

"I think Penangites, too, would like to avoid water rationing."

The last time water rates were increased in Penang was 23 years ago. However, Lim's announcement was greeted with mixed reactions by various quarters.

Consumers Association of Penang (CAP) president S.M. Mohamed Idris said the water tariff increase was long overdue.

"The water rate hike will definitely stop water abuse. Consumers will react fast when they have to dig deep into their pockets to pay for utilities."

Penang Hoteliers Association president Datuk Lim Mee Lee, however, disagreed, saying the increased water tariff would be a burden to hoteliers.

"The state government imposed levies on hotel rooms, which will come into force in June, and now we have to contend with a water tariff hike.

"This will hit us hard," he said, adding that some hoteliers would be forced to increase their room rates to offset the increase in their overheads.

He said it could not be ruled out that a water rate hike would cause a chain reaction to other businesses and it could ultimately affect consumers the most.

Penang Malay Congress president Rahmad Isahak said the state government should postpone its decision to increase the water tariff.

"The economy is bad right now and the people are already feeling the pinch.

Penang offers 60% discount on conservation surcharge
The Star 4 Apr 14;

GEORGE TOWN: The Penang government has proposed to the Penang Water Supply Corporation (PBAPP) that households with eight or more members be given a 60% discount on the water conservation surcharge from May 1.

Families can go to any of the nine PBAPP offices and produce the MyKads of those staying “under one roof” to qualify for the discount, Chief Minister Lim Guan Eng told a press conference at his office here yesterday.

He said PBAPP chief executive officer Jaseni Maidinsa will handle the mechanics of the matter. Responding to criticisms on the water tariff hike, Lim, who is PBAPP chairman, said the state has a responsibility to do everything possible to avoid water rationing.

“Penang’s water consumption is 50% higher than the national average of 212 litres per capita per day,” he said.

“This is just not sustainable. The public must be made aware of the severity of the drought and the real possibility of water rationing.”

He said the PBAPP subsidised nearly RM70mil last year to maintain the domestic tariffs as the lowest in the country at 31 sen for the first 35,000 litres per month. He added that the national average is 66 sen, with the most expensive water being in Johor at 105 sen.

Penang MCA deputy chairman Tan Teik Cheng said Lim had announced the hike in water tariffs without consulting the people.

“I challenge Lim to disclose the water bill of his official residence and that of the relevant agencies to prove the state government is making itself a role model in saving water,” he said in a statement here yesterday.

Penang MCA secretary Dr Tan Chuan Hong said Lim always claims the state government is ready to face criticisms but when the public rejects a certain move, the state administration remains unflinching.

Penang Gerakan secretary Oh Tong Keong said the party wanted an explanation if the increase in water tariffs was due to the ‘surplus of directors’ in PBAPP.

“Lim should inform the people if the payment of allowances to the directors in the PBAPP board, warranted an increase in water tariffs,” he said.

Penang MIC Putera chief N.G. Senthelnat­h­an said that the state government had not made any effort to build water dams or find alternative sources to increase water supply.

'Cloud seeding in catchment areas will go on'
KALAVAANI KARUPIAH AND MASTURA YUSOFF New Straits Times 4 Apr 14;

NOT SUFFICIENT: Rainfall did not increase water levels in Selangor dams, says Met Dept

KUALA LUMPUR: EVEN though there has been steady rainfall in recent days, it has not fallen over the required water catchment areas, resulting in the need to extend water rationing.

Meteorological Department's atmospheric science and cloud seeding division director, Azhar Ishak, said the cloud-seeding operation would be continued in an effort to increase the water levels in dams in Selangor.

"We will continue to carry out the cloud seeding operation until we get further directives.

"At the same time, the process can only be conducted if there are enough clouds in the catchment areas surrounding the seven dams.

"Basically, there is no other method to ensure that cloud seeding results in more precise rainfall. All we need are sufficient clouds to conduct the operation."

Department of Irrigation and Drainage's water resources and hydrology director, Datuk Hanapi Mohamad Noor, said though the rainwater was not sufficient in the catchment areas, it had helped raise the water levels in the dams.

"Take for example, the Sungai Selangor dam. Generally, the water level in this dam drops by an average of 0.2m daily without any rainfall. The dam also releases water into Sungai Selangor and three other water treatment plants, which are located downstream of the dam, in Rasah, Kampung Timah and Rantau Panjang."

Hanapi said if rain did not fall in the dam catchment area but instead downstream of the dam, it would still help raise the water level in Sungai Selangor through other river tributaries such as Sungai Batang Kali, Sungai Ulu Yam, Sungai Serendah and Sungai Rawang.

Hanapi said additional water could be sourced from underground by constructing tube wells.

"Tube wells can supply underground water between half and one million litres per day, which can benefit about 5,000 people daily.

"If more underground tube wells can be constructed, preferably near the water treatment plants, then there will be more water supply available from the rivers."

Syarikat Bekalan Air Selangor Sdn Bhd's corporate communications and public affairs assistant general manager Priscilla Alfred said the water crisis had forced it to continue the water rationing exercise even though the third phase of the exercise was slated to end this month.

"We will continue our efforts until we get the stop notice from the Selangor government."

The ongoing water crisis has taken a turn for the worse, with more than 2.2 million consumers affected in the latest phase, bringing the total number of those affected to 5.9 million in Selangor, Kuala Lumpur and Putrajaya.

The water rationing is expected to continue until the end of this month and may be extended if the situation worsens. Additional reporting by Nikita Nawawi

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Malaysia: Stormy spell for west coast

ZAHRATULHAYAT MAT ARIF New Straits Times 5 Apr 14;

HIGH ALERT: Met Dept forecasts strong winds, thunderstorms until May

ALOR STAR: RESIDENTS in the west coast states of the peninsula have been advised to be on the alert for strong winds and thunderstorms due to the inter-monsoon season which will cause changes in weather patterns.

This phenomena had resulted in stormy conditions in Padang Terap, Kedah, and Arau, Perlis, which saw more than 100 houses damaged in recent days.

Meteorological Department's commercial and corporate services division director, Dr Mohd Hisham Mohd Anip, said the inter-monsoon season, which started on March 29, would last until early May.

"Normally, this is also associated with strong winds and flash floods. The inter-monsoon season is expected to bring widespread rain and it will be more frequent in the afternoons and evenings in the west coast of the peninsula.

"The season also usually brings light and variable winds which could develop clouds and subsequently lead to thunderstorms," he said when contacted yesterday.

Checks with the Meteorological Department website showed Kedah and Perlis were forecast to get isolated rains in most part of the states within four and five days in the afternoon.

It was reported that in Kedah, 65 houses in Kampung Pinang, Kampung Lebai Saman and Kampung Belukar Luas in Pedu were damaged by a freak storm and strong winds. Four of the houses were completely destroyed in the 5.30pm storm which was described as the worst in recent years.

In Perlis, a thunderstorm also wreaked havoc in Guar Sanji and Tambun Tulang on Thursday, leaving more than 60 houses damaged, with at least two completely destroyed.

Read more: Stormy spell for west coast - General - New Straits Times http://www.nst.com.my/nation/general/stormy-spell-for-west-coast-1.550082#ixzz2xyKSpB00

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Indonesia: Sumatran tiger rescued from trap may undergo leg amputation

Antara 4 Apr 14;

Bengkulu (ANTARA News) - A Sumatran tiger (Phantera tigris sumatrae) may have one of his legs amputated due to infection after being entangled by a hunters sling snare trap in Bengkulu.

Veterinarian of Bengkulus Natural Resource Conservation Agency (BKSDA) Erni Suyanti Musabine said here on Friday the tigers front right leg had to be amputated to prevent the spread of bacterial infection.

"It must have been entangled for three days," she said.

Despite the defective front right leg, the tiger was in good physical condition. It had neat fur and his weight was proper.

The three-year old female tiger was 1.5 meters long and weighed 70 kilograms.

Antibiotic was used to prevent the spread of the bacterial infection to the other parts of the tigers body.

The tiger was now kept in the BKSDA office and will receive follow-up treatment on Saturday, April 5.

Previously, the BKSDA received report about the trapped tiger on Tuesday, April 2, from an official of the local Forestry Office, who was measuring the perimeter of the commercial permit (HGU) for PT Dinamika Selaras Jaya, a private oil palm plantation company in Beriang Tinggi Village, Tanjung Kemuning Subdistrict, in the Kaur district of Bengkulu.

The BKSDA team began the rescue operation on Thursday morning as it was difficult to conduct the operation during the night.

The sling snare traps from poachers or even local residents had become a serious threat for wildlife in Sumatra.

Last year in February, another female Sumatran tiger was also found entangled by sling snare trap in Bengkulu.

Due to severe infection, the ill-fated big cat died two months later. The local BKSDA veterinarian said one of the tigers rear legs had a pinched nerve after being entangled on the sling snare trap. It also suffered from liver disease that worsened its condition.***3***

(Reporting by Helti Marini Sipayung/Uu.INE/KR-BSR/O001)

Editor: Priyambodo RH

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Philippines Food-for-Work: How 6 Thousand Families Planted 5 Million Mangroves

Reuters AlertNet 4 Apr 14;

Through WFP's Food-for-Work, residents of Barangay Mampang in Zamboanga City were able to plant 5 million mangroves- ensuring the revival of the sanctuaries for fishes and migratory birds as well as providing propagules for the Office of the City Agriculturist.

‘My neighbours would ask me, "Who in their right minds would give out food in exchange for work?" I tell them, "We would not lose anything in trying."'

It was a bright morning in Barangay Mampang in Zamboanga City. Community leader Maribel Barbera eagerly looks out of their humble community center wearing a buri hat and a big smile. This very animated Maribel is a far cry from the Maribel of five months ago, when the conflict first struck their barangay.

"The war passed by here. There was a military officer who was held hostage. Our houses were peppered with bullets," Maribel recalls. "Everyone was affected. There is no work. There is no food. Even if you have money, there is no food available to buy! "

Maribel, 36, is a mother of four. Her family, like most of the residents of Barangay Mampang, are seaweed farmers. It was during the harvest and replanting season when the conflict started and they had to be forced-evacuated. Whole farms were abandoned and have been destroyed. The seaweeds went past their scheduled harvest dates. "We were supposed to replant that day. Seaweeds are spoiled when not planted immediately. We were not able to plant anything. Zero," Maribel recounts.

Rehabilitation of their seaweed farms has taken a considerable amount of time in which case the residents needed an alternative source of income. To address this concern, many initiatives are being introduced by the Office of Agriculture of the City Government of Zamboanga, not only in Mampang, but in all of the conflict-affected areas. It was through one of these initiatives that the City Government and the World Food Programme(WFP)introduced Food-for-Work projects, where residents of conflict-affected areas are introduced to alternative livelihoods in their transitory sites (where they are evacuated) or at off-sites (conflict-affected areas where the people have started returning after evacuation), in exchange for food and/or rice.

One of such projects is the planting of mangroves, which involved three coastal barangays in Zamboanga City. Residents are given one sack of rice in exchange for cleaning and planting mangroves on coastal lands that are previously unused and have been damaged by conflict. Several orientation seminars were held to prepare and educate the community regarding mangrove planting and continuous training ensured that the community are now somewhat of an expert in mangroves and mangrove ecology.

At the end of the intervention, a total of 6000 families were given assistance, 2,500 of which are from Mampang. These 6,000 families, in turn, were able to cover planting 502 hectares of mangrove areas, which is equivalent to an astonishing 5 million mangroves.

Alexander Luciano, 50, recalls how their community was at first, reluctant to participate in the project. "Nobody believed us initially. We had to convince them that we will, indeed, be given rice in exchange for work," he says. "But when we did, everyone was really enthusiastic. We helped each other!"

Although badly damaged during the conflict, Barangay Mampang is now a source of mangrove propagules for the Office of Agriculture in Zamboanga. These mangroves are now also slowly helping in the revival of the fish sanctuaries in the area and, with it, sanctuaries for migratory birds who passes by during their migration.

The residents have long since returned to their original livelihood, but they cannot forget the one time they learned of a different kind of work. For Maribel and Alexander, it is not only about getting food. "Our community is very active in participating in all these projects. We tell ourselves, these people are helping us. We should also help ourselves! We must not lose hope," Maribel says.

Hope is, indeed, a talisman of strength for these people who are determined to get back on their feet, while at the same time eager to help their government and the environment.

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England wheezes through haze of Saharan dust cloud

Paul Sandle PlanetArk 4 Apr 14;

It has shrouded England's most famous monuments for days, prompted a rash of calls to the emergency services over health fears and even stopped Prime Minister David Cameron from taking his early morning jog.

A freak combination of weather conditions has left parts of the country covered in a smog haze made up of high levels of particles, including dust from the Sahara.

Pollution levels in the capital and southeast England were rated at a maximum level of 10 on Thursday, according to the Department for Environment, Food and Rural Affairs (Defra).

"The high level of air pollution this week is due to a combination of local emissions, light winds, pollution from the continent and dust blown over from the Sahara," a Defra spokesman said.

Pollution levels in Britain reach the highest level in particular places a few times a year, he said.

In March, air pollution levels in Paris hit such heights that transport chiefs enforced the most drastic traffic curbs in years, making public transport free in the French capital.

Landmarks like London's Big Ben and the huge "Angel of the North" sculpture in the city of Gateshead were shrouded in haze as frustrated tourists try to take pictures through the murk.

The pollution has been a particular bane for those with respiratory problems and health experts have been discouraging people from taking vigorous exercise outdoors.

Cameron was one who heeded the advice.

"I didn't go for my morning run this morning, I chose to do some work instead. You can feel it in the air," he told the BBC.

Asthma UK said an overnight poll showed there had been a surge in reported asthma attacks triggered by the high pollution levels.

Some 30 percent of respondents had had an asthma attack as a result of the pollution and 84 percent reported using their blue reliever inhaler more than usual, the charity said.

Chief Executive Kay Boycott said: "The current high levels of air pollution are having a significant impact on the health and quality of life of people with asthma and that they need to take urgent action to stay safe."

London's ambulance service said calls out for people with breathing problems were 14 percent higher than average on Wednesday.

London resident Barry Neild said he had asked for his daughter, who has asthma, to sit out a sponsored skipping event at her school in northwest London because the pollution had caused her breathing to become labored.

"It's obviously a concern for us to have her out and about," he said. "Normally she would cycle to school or get her scooter, which is quite an active journey for her but now she is walking very slowly."

Forecasters say the smoggy conditions are likely to last into the weekend.

(Reporting by Paul Sandle, Additional reporting by Lavinia De Luca, Editing by Angus MacSwan)

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U.N. climate chief urges radical clean-up of oil, gas industry

Alister Doyle PlanetArk 4 Apr 14;

The U.N.'s climate chief called on the oil and gas industry on Thursday to make a drastic shift to a clean, low-carbon future or risk having to leave three-quarters of fossil fuel reserves in the ground.

"The time for experimentation, for marginal changes and for conditional response is now over," Christiana Figueres told the International Petroleum Industry Environmental Conservation Association (IPIECA) in a speech in London.

She urged an "urgent transformation" to greener production after top scientists warned on Monday that climate change would damage food supplies, slow economic growth and aggravate the underlying causes of armed conflicts.

Limiting global warming to an agreed U.N. ceiling "means that three quarters of the fossil fuel reserves need to stay in the ground, and the fossil fuels we do use must be utilized sparingly and responsibly," she said.

Oil and gas firms say they are addressing global warming, for instance by focusing on energy efficiency and low-carbon technologies.

In a report on climate change risks on March 31, Exxon Mobil said that all energy sources, including fossil fuels, had to be exploited to meet growing world demand.

"All of Exxon Mobil's current hydrocarbon reserves will be needed, along with substantial industry investments, to address global energy needs," William Colton, vice president of corporate strategic planning, said in a statement.

Figueres has become more outspoken in criticizing the fossil fuel industry in recent months as part of efforts to promote renewable sources such as solar or wind power. In November, she called on the coal industry to clean up.

CARBON CAPTURE

She said oil and gas firms should start by reporting risks to their business after governments agreed in 2010 to limit warming to less than 2 degrees Celsius (3.6 Fahrenheit) above pre-industrial times.

Temperatures are heading to breach the ceiling.

Figueres, the head of the U.N.'s Climate Change Secretariat in Bonn, noted the U.N.'s Intergovernmental Panel on Climate Change says the world has already burnt more than half a budget of a trillion metric tons of carbon if it wants to stay below 2C.

Companies should also take measures such as cutting methane leaks, lobby for an effective price on carbon emissions and invest in carbon capture and storage (CCS), she said.

CCS, which includes technologies to strip carbon dioxide from the flue gases of power plants, would allow continued output by eliminating most carbon emissions.

So far, however, there are few projects.

Saskatchewan Power in Canada will start its $1.35 billion Boundary Dam coal-fired CCS project this year, capturing a million tons annually of carbon dioxide in what it says is the world's first post-combustion coal-fired CCS project.

(This story makes correction in paragraph 11 to "trillion tonnes" from "billion tonnes")

(Reporting By Alister Doyle, editing by David Evans)

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