Petroliam Nasional Bhd (Petronas) does not fund infrastructure projects, said its corporate planning/development division vice-president, Datuk Nasarudin Mohd Idris.He was responding to Penang Chief Minister Lim Guan Eng's proposal that Petronas fund the second Penang Bridge project, valued at over RM2 billion.
"Petronas only contributes to the government's coffers in the form of dividends. It's up to the government on how it will be used," Nasarudin said at the Invest Malaysia 2008 Conference here yesterday.
Nasarudin also said the company had contributed more than RM330 billion to the government over the past 30 years in the form of taxes, dividends, export duties and royalties.
"We finance infrastructure as far as oil and gas projects are concerned, like Kertih, whereby we create a petrochemicals complex, but we don't finance buildings and bridges."
Source: NST: Petronas 'does not fund bridges'
Petronas bosses have forgotten. They funded Bank Bumiputera in the RM2bil BMF scandal. Petronas's least happy venture was its ownership of the Bank Bumiputra, the second-largest, but least-profitable, of the commercial banks incorporated in Malaysia. Petronas spent more than M$3.5 billion over five years trying to rescue the bank from the impact of the bad loans it had made, starting with its support of the Carrian property group of Hong Kong, which collapsed in 1985, taking the bank's share capital down with it. In 1991, Petronas sold the bank back to another state company, Minister of Finance Inc., and announced its intention to concentrate on oil, gas, and associated activities in future (source: wikipedia)
Petronas funded the construction of the Petronas Twin Tower to fulfill Mahathir's aspiration of having the tallest building in Malaysia. Petronas also help to bail out Mirzan Mahathir and Mokhzani (source: here and here)
Petronas had been tasked with the development of the RM112 billion Eastern Corridor projects under the 9MP. Not all the ECER projects are oil and gas projects; some are roads and rural development. Based on a master plan drawn up by PETRONAS, the ECER will see some RM112 billion spent on 227 projects by the year 2020. The master plan has identified tourism; oil, gas and petrochemical; manufacturing; agriculture and education sectors for economic development (source: www.petronas.com.my)
Petronas also sponsored hundreds of millions in BMW-Sauber F1 team. Petronas was also involved in bailing out Proton-DRB HICOM, MAS, and was heavily financing Putrajaya Holding (source: atimes.com)
19 comments:
Morn Maverick...
Datuk Nasarudin Mohd Idris is a kecik fellow. Reads the prepared script only. Siapa sponsored that wasteful Putra Jaya white elephant?
Second Bridge Penang if absolutely necessary then cost wise most sensible to utilise Petronas dollars here.
Time for a change of the Federal Goverment is NOW most definately.
Sicko
28 Mac 2008
Petroliam Nasional Bhd (Petronas) funds only umno-linked, not DAP, infrastructure projects
Dear Maverick,
Let us all support the Chief Minister's proposal for the Second Bridge using Petronas (either as Private Finance Initiative (PFI) Guarantor or Principle for the Project). This must be table out in the Parliament as soon as possible by the Barisan Rakyat and tasked the Federal EPU to work the mechanism out.
The return on investment on the second bridge by the Country will be fast as it will spur growth for Penang, Northern Perak and Southern Kedah.
The statement should be read: "Petronas will only fund UMNO".
The RM 2.5 billions bailed out by Petronas in 1985, with inflation, are equal to RM 4.93Billions.
Seems BR just throw out the agenda to BN and umno has not idea how to handle it. Thus Petraonas try to bullshit out of its way.
In fact, Penang don't need the second bridge. By reintroduce efficient bus services, Penang can halves the conqestion.
Sicko,
The problem is that Petronas will fund any project if directed by PM; nothing to do with business model.
Shahf,
I do support the call but it is not up to us citizens; it's the money game.
Ycg,
I do not agree with your re-phased statement. Petronas does take instruction from PM, not Umno per se.
Moo_t,
I don't agree with you, Moo_t. I firmly believed that Penang needs a 2nd bridge. It's viable project.
Dear Maverick,
Well since you mentioned the money game, then you should know that the UEMC-CHEC is the EPC and China EXIM bank is financing the project with soft loan of USD 800 million plus. The question every body should ask who gets the commission from the CHEC and how much is the commission.
There is very much arm twisting between Cina and Malaysia as the Chinese Gov't wants Malaysia to reduce the Trade imbalace between China and Malaysia which favors Malaysia. So when the Chief Minister proposed that this project is fund through Petronas this matter will be a non-issue.
Petronas does only selective funding of projects. Projects chosen by their master. No questions asked and no objections raised.
mave, agree with you, petronas bosses seem to forget they are answerable to only PM, and will do everything he instructs them to do...
let's now make it answerable to parliament, so that its money will be closely scrutinised and wisely spent ..
But, the so called "bail outs" and investments and taking over of equity are not projects financing
WOWWW....
what a Lan-Xi Mou-Yoong statement from Petronas Management member.
it would be about right for Barisan Rakyat take over New Government and Funds the New Management of Petronas, hence retire the existing Lan-Xi Mou-Yoong by taking away the company provided Mercedes Benzes, bungalows, Datukship, and get them to manage Petrol Stations at remote areas in Belum, Pontianak, Bukit Kayu Hitam.
what level of thinking were these guys being trained from????
what a waste of Rakyat resources on these sort Management guys!
WOWWW....
what a Lan-Xi Mou-Yoong statement from Petronas Management member.
it would be about right for Barisan Rakyat take over New Government and Funds the New Management of Petronas, hence retire the existing Lan-Xi Mou-Yoong by taking away the company provided Mercedes Benzes, bungalows, Datukship, and get them to manage Petrol Stations at remote areas in Belum, Pontianak, Bukit Kayu Hitam.
what level of thinking were these guys being trained from????
what a waste of Rakyat resources on these sort Management guys!
Shahf tech,
Thanks Shahf; that's great info.
Bayi,
Ya, Petronas is PM's cheque book.
Dinoor,
Petronas will never be answerable to parliament.
Warrior2,
You don't seems to understand economics. You mean funding Putrajaya is not investments? Buying equitable stakes of companies which are non-oil & gas are not project financing? Twin Tower project is not project financing? You seems to have a blinkered knowledge of economics. I hope you read up the subject of macro and micro economics.
Ling Ling Chatt,
I do not agree of BR to take control of Petronas because they will end up the new sucker.
What's wrong with the spending the money on the eastern corridor? In terms of development, terengganu is way behind penang. After all, the oil is from there, so it makes sense to spend some there. I know people would say the oil belongs to the country, but proceeds from cutting down balak in pahang go the state, they dont give it back to govt to spend on building bridges in other states. So Tganu is already doing everyone a favour by giving most of the money back to the govt. It is quite unfair for tganu not to get at least some proceeds back. Besides, Penang already has one bridge, and another one soon to be build. People everywhere had to pay toll these days, even Terengganu people have to pay for using the east coast highway.
I dont agree with the previous administration spending petronas money on things like BBMB etc, but the good thing is that the current admin have not done something stupid like that yet - Paying for this bridge will be one of them.
dear sm,
i dunno what is your intention, whether to speculate of justifying things. at some point there are no right or wrong. people may just satisfied their words are posted and commented. anyway dude, do you ever know about "energy receive, energy return" or "aspiring others" ermm or "intergrity" ? if no.okay, stop talking much about petronas. do some homework and then get back to your line. it those are your life, its okay, it is a gift.
dude, you are hero!
-i try to make you look good
sorry for using this site to comment on the CHEC – construction of 2nd bridge.
the newspaper keep on emphasised on the bridging loan of USD8mil but who have actually talk and carry out study on the construction cost of the bridge. what CHEC aimed on is the profit (45%) return from the construction. tun abdulah quickly signed the contract to chec befor he have visitto china and dropped his position as PM.
TUN you must carry out searches. a lot of terms conditions been deleted from the contract. JKR contract is considered fair to all party but all beneficial cluases have been deleted by the idiot tan sri zaini in order to please chec. (how much benefits he has gained;
1. 30% bumuputera participation ; deleted . the bridge construction should irritate the local market and benefit penang people but the substructure are entirely carry out by china people. dont tell me malaysia no expert. sad
2. use of local materials ; deleted. china has imported lot of raw materials for the construction of the second bridge. bo local people are benefited from the project.
3. base rate for variation of price i.e fuel RM1.56, steel RM3k/tan and cement price RM10.60/50kg bag. all were fixed at very low rate. the based rate do not reflect the actual market rate at the time of tender. the bridge will ended up even expensive then what published in paper i.e. 4.3bil please refer to statistic department analysis release 1 and release 2
4. do you know how much of gifts, cash voucher, sweet have been given to idiot tan sri zaini as medium man to pak lah and the most teruk one is DR Lim,(pak lah’s colony).
5. chec never engage any profesional QS to liason with the government as require in the goverment requirement.
tan sri zaini’s words overwrite everything.
6. the 1st bridge widening has severally improve the traffic. why should the 2nd bridge be so urgent to benefit the opposition parties.
7. the very sad thing is no one actually carried out cost study for the 2nd bridge before contract being awarded to chec.
8. the contract visibly cited that if there is corruption found the project can be terminated immediatedly.
9. Dr. Lim (pak lah’s colony) enjoyed the most. his relative was place in chec HQ and getting fantastic salary package without work.
10. chec is solely a management company and the whole project is subdivided to five sections. HRA has successfully get the job because of pak lah. the less are all sub contrcated to china company.
11. try to imaging how good the profit is even after entirely subcontracted to china mainland contractor. i.e profit 40 – 45% from 2.2bil can at least recover the local market.
12. dont tell that local contractor are all stupid to the extend that only china can built the bridge. i.e gamuda, muhibah, mmc etc.
13. the china company treat local staff like shit. just simply retrench and giving unequal benefits. all mainland staff got double pay for the month of december but local people get 0.
14. the most critical thing TUN must know is the advance payment to must deduct provisional sum as stated in the condition of contract. but tan sri zaini has replied the letter from chec confirming the 15% advance paymnet without deduction to the provisional sum i.e. street lighting and piling. PLEASE CHECK
15. idiot zaini never reply all correspondences isssued by chec but he immeidately rely on confirmation of the figure of advance payment (within 20 minutes). Tun please check their fax records.
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