PUBLIC UTILITIES (AMENDMENT) BILL

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PUBLIC UTILITIES (AMENDMENT) BILL: Order for Second Reading read.

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The Minister for the Environment and Water Resources (Assoc. Prof. Dr Yaacob Ibrahim): Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, this Bill seeks to amend the borrowing powers of the Public Utilities Board as provided in the Public Utilities Act.

Currently, the borrowing provision in the PU Act allows PUB to raise capital from banks and other financial institutions by way of mortgage, overdraft or otherwise. As such, PUB is limited to borrowing from only banks and financial institutions.

Sir, this amendment would give PUB greater flexibility in raising funds from the market and allow it to become more efficient in managing its financial strategy. Specifically, the amendment will allow PUB to:

(a) raise loans from the Government;

(b) raise loans from any source within or outside Singapore, including through the creation and issue of bonds; and

(c) make financial agreements for credit facilities for procurement.

The proposed amendment to the borrowing provision is in line with the borrowing powers of other statutory boards such as HDB and JTC. The powers to issue bonds and raise loans from the Government are standard provisions for most statutory boards.

To conclude, Sir, this Bill will provide PUB greater flexibility in managing its borrowing strategy.

Sir, I beg to move.

Question put, and agreed to.

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Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Assoc. Prof. Dr Yaacob Ibrahim].

Bill considered in Committee; reported without amendment; read a Third time and passed.