Grim warning of the critical water situation in the Klang Valley

water shortage in Klang Valley

• A GRIM warning of the critical water situation in the Klang Valley, the nation's nerve centre, points to not only periodic dry taps for millions of households but the likelihood of a negative impact on the economy.
• Syabas, the water supplier for Selangor, Kuala Lumpur and Putrajaya, took out an advertorial in national newspapers on Friday providing details of what consumers could expect with treated water reserves down to well below the danger level of 1%.
• The required minimum reserve level to avoid emergency situations like drought and pollution at water sources is 10% while the ideal figure is double that.
• In August, some three million people in the Klang Valley were hit by water woes for a week when four treatment plants had to be shut down because used engine oil was dumped into a river in Rawang.
• Besides being a basic need, water is a key element for industrial and commercial development and the deciding factor in a nation's ability in attracting investments.
• All 34 plants run by the four water treatment operators are working between maximum and overload capacity and supply disruptions caused by factors like an upsurge in demand due to population increase, extraordinary consumption during peak periods as well as power cuts are bound to worsen the situation.
• Already 778 applications for development projects in Selangor, Kuala Lumpur and Putrajaya had to be turned down by the National Water Services Commission since January last year on account of supply shortages.
• The water shortage in these three regions while slowing down the frenetic pace of development might provide some breathing space for the environment. It also means loss of much needed new jobs. Also projects to overcome the housing shortage could not take off thus putting greater pressure on housing.
• A senior Syabas executive said the company had to give the full facts and figures to drive home the seriousness of the situation to consumers so that they won't be confused by baseless statements.
• "This is not intended to cause panic or undue worry to consumers but only for them to understand the actual situation," said the advertorial.
• As previously mentioned in this column, politics obstructs efforts to ensure adequate supply in Malaysia's most highly populated belt which is also its industrial hub.
• To mitigate the situation, Selangor has agreed to carry out three projects costing some RM600 million that are expected to come on stream between 2014 and 2016.
• But according to the advertorial, even with these mitigation projects to increase supply, the reserve level will remain at below 1% taking into account the rapid population increase and economic development.
• Consumers would not have to worry about taps running dry if only politics had not stood in the way of the vital Langat 2 treatment plant; the federal government has not been able to obtain a development order from the Selangor government to proceed with its construction.
• Construction of the plant was to have started in 2010 to treat raw water to be channelled from Pahang to Selangor via a 44.6km-long pipeline costing RM8.65 billion, the biggest such project ever undertaken.
• This inter-state project is over 80% completed but work on Langat 2 scheduled to be ready early next year has not even started. With the project more than three years behind schedule, the massive pipelines being laid out will be a white elephant in the interim.
• And while waiting for Selangor politicians to get their act together, the people and the economy will suffer.
• The latest about Langat 2 was a remark from Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili two weeks ago in Parliament.
• But he merely said the federal government could take legal action under the National Water Supply Act if an agreement with the Selangor government could not be reached to proceed with the Langat 2 plant.
• It's clear the state government is delaying approval for the development order despite knowing the dire consequences. So what is Putrajaya waiting for?
• In other words, such an action as provided under the law should have been taken a few years ago so as not to compromise the capital-intensive project.
• It's better for the court to decide once and for all and because water is life, we can only expect the judges who would preside over the case to place uppermost the interest of the nation and wellbeing of the rakyat and the economy.
• Meanwhile, the water saga continues as Gamuda Bhd, which owns 40% of Syarikat Pengeluaran Air Sungai Selangor Sdn Bhd (Splash) – one of the four concession holders in the state – has rejected the bid by the state to take over its 100% equity in Splash for RM1.8 billion.
• The state government, via its investment arm Kumpulan Darul Ehsan Bhd, has offered RM9.65 billion to take over the four water concessionaires. Besides Splash, the other three are Puncak Niaga (M) Sdn Bhd, Syabas and Konsortium Abass Sdn Bhd.
• Puncak Niaga Holdings Bhd, which owns 70% of Syabas with the other 30% held by state government, has accepted the offer but with conditions.
• "The ball is in their (state government) court. If they want to buy over and own it ... and the price is right for our shareholders, we won't stand in the way," said Gamuda managing director Datuk Lin Yun Ling.
• Selangor Mentri Besar Tan Sri Abdul Khalid Ibrahim is still optimistic that the deal with the concessionaires could be struck within the next two weeks.
• But the Gamuda boss stands firm in his belief that the best way to ensure competitiveness, transparency and affordable tariff in the water industry is to leave it to the private companies.
• We have seen how companies run by state governments fail and have to be bailed out or close shop and Lin's argument is valid.
• Without the willing buyer willing seller accord on the deal, the water saga is destined to be protracted, going into the New Year and beyond, bringing in its wake potentially untold suffering and hardship. -- Azman Ujang is a former editor-in-chief of Bernama. Comments: letters@thesundaily.com