The Star 8 Mar 14;
JOHOR BARU: The Johor government is prepared to obtain treated water from other sources should Singapore hike up the price under a possible bilateral review of the state’s sale of raw water to its southern neighbour.
State Public Works, Rural and Regional Development Committee chairman Datuk Hasni Mohamad foresees that if both countries agree to the price increase for raw water Johor sells to Singapore, the island republic would in turn want to raise the price of treated water it supplies to Johor.
He said that on the assumption that both countries agree to review the price of raw water from the current three sen per 1,000 gallons to the proposed 45 sen, Singapore would also increase the price of the five million gallons of treated water it sells back to Johor daily.
“If Singapore increases its treated water from the current 50 cents (RM1.29) per 1,000 gallons to, say, S$5 (RM12.88) per 1,000 gallons, it is not viable for us.
“At that rate, it will be cheaper to produce our own treated water,” he said when contacted here yesterday.
Hasni added that Johor sells 250 million gallons of raw water per day to the island republic under the water agreement and purchases 2% of treated water from Singapore to supply to parts of Johor Baru and Kota Tinggi.
“I think we can be independent of Singapore for treated water and the state government is fully ready with a contingency plan to switch to other sources for treated water other than getting it from across the Causeway,” he said.
Hasni said the state could depend on plants in Kota Tinggi like Tai Hong and Sungai Johor for treated water in place of the supply from Singapore.
He added that the Federal Government had been made aware of Johor’s readiness to be self-sufficient.
“But this is still premature to assume and it still depends on the willingness of both governments to agree to a suitable rate,” Hasni said.
“But Johor deserves to increase the price of raw water after selling it at the current three sen for the past 53 years.”
Johor: We have not waived our right on water rates
New Straits Times 8 Mar 14;
JOHOR BARU: The Johor government will leave it to their Federal counterparts to negotiate with Singapore regarding the new price for the supply of raw water to Singapore.
State Public Works, Rural and Regional Development Committee chairman Datuk Hasni Mohamad said yesterday the Attorney-General's Chambers had given the state government the green light to reassess the current rate of three sen per 1,000 gallons (4, 546 litres).
The state government has been abiding by the water agreement made in 1962 until now. It was agreed that the price review can take place after 25 years.
"We did not review the price in 1987 and because of this, (Singaporean Foreign Affairs Minister) K. Shanmugan was of the opinion that Malaysia has waived its right to do so.
"I would like to stress that this is not the case," he told.
As reported on Thursday, Hasni said the price review could still take place at any time after 1987.
Asked if this would affect the cordial ties between both countries, Hasni said he believed that it would not as there would be a mutual agreement concerning the price review.
On whether Johor will have to continue to supply raw water to the republic should the state's own water reserves reach a critical stage, Hasni said Johor would make sure that it supplied 250m gallons of raw water to Singapore as stipulated in the water agreement.
"Johor is not facing any water problems at present, and should there be any shortfall, we will be able to handle it," he said.
Public Accounts Committee chairman and Johor MP Datuk Nur Jazlan Mohamed said he hoped any differing views by the two countries could be settled amicably through bilateral discussions.
It was also reported the A-G's Chambers met a Johor legal advisory team in Kuala Lumpur in early January and gave them the green light to review the rate.
On Wednesday, Shanmugam was responding to a parliamentary question by Ellen Lee (Sembawang GRC), who had asked whether the bilateral water agreement allowed for Malaysia to raise the price of raw water sold to Singapore at any time before its expiry in 2061.
Shanmugam maintained that neither Malaysia nor Singapore could unilaterally change the price of raw water following the terms of the 1962 Water Agreement.
Bernama reported yesterday that Singaporean Environment and Water Resources Minister Vivian Balakrishnan said imported water from Malaysia remained an essential part of the republic's water supply.
"While we aim to attain water self-sufficiency before the expiry of the 1962 Water Agreement in 2061, in the meantime, we expect all parties to uphold the current agreement for as long as it is in force."
Johor disputes Singapore's statement on water rights
The Star 7 Mar 14;
JOHOR BARU: The Johor government has disputed Singapore's statement which claimed that the state had lost the right to revise the price of raw water supplied to the republic under a 1962 agreement.
State public works, rural and regional development committee chairman Datuk Hasni Mohamad said the agreement gave the right to Johor and Malaysia to check the price of raw water supplied to Singapore.
"The attorney-general has given his view that we have the right to review the price of raw water sold to Singapore. We do not agree with Singapore's view (that) we have lost the right (to revise the price of raw water)," he told Bernama.
Singapore Foreign Minister K. Shanmugan was quoted as saying that Singapore's position was that Malaysia had lost its right to review the water price after choosing not to do so in 1987.
The 1962 Water Agreement provides for a review of the price of raw water supplied to Singapore after 25 years or 1987.
And under the same agreement, Malaysia through Johor supplied 250 million gallons of raw water per day to Singapore at three sen per 1,000 gallons.
At the same time, the republic was supplying five million gallons of treated water to Johor daily at 50 cents per 1,000 gallons.
Hasni said it was not a matter of whether the state government reviewed the prices or not, or missed an opportunity to do so in 1986 and 1987.
"As far as the state government is concerned, we want the matter to be discussed bilaterally."
The Johor-Singapore water deal surfaced last month when Hasni revealed the agreements were set to undergo a review after the Attorney-General's Chambers had given the state government the green light to reassess the rate.
He said the state government agreed the revised raw water involved bilateral issues between Malaysia and Singapore, and should be forwarded to Putrajaya to handle.
He said the state government informed the federal government last month, through a note to highlight the issue of raw water price review in bilateral talks involving Malaysia and Singapore.
"Bilateral talks are held regularly in two or three months, and we hope the issue of revision of the raw water price can be highlighted in the bilateral talks," said Hasni. - Bernama
Johor disputes Shanmugam’s comments over pricing of raw water
Channel NewsAsia 7 Mar 14;
SINGAPORE: The Johor government has disputed Singapore’s Foreign Affairs Minister K Shanmugam's statement that Malaysia had lost the right to revise the price of raw water.
Malaysian media reported that state public works, rural and regional development committee chairman Hasni Mohamad had said the 1962 Water Agreement gave the right to Johor and Malaysia to check the price of raw water supplied to Singapore.
He was responding to Mr Shanmuganm's statement in Parliament earlier this week that Malaysia had lost the right to review the price of water after it chose not to do so in 1987.
Mr Hasni said it was not a matter of whether the state government had reviewed the prices or not, or that it missed an earlier opportunity to do so in 1986 and 1987.
He said that the state government believed the matter needs to be discussed bilaterally, and that since it involved bilateral issues between Malaysia and Singapore, it should be handled by Putrajaya.
- CNA/gn
