U.S. Water News Online
KUALA LUMPUR, Malaysia -- Malaysia's southern Johor state
will stop buying treated water from neighboring Singapore within six
months, its chief minister said.
Chief Minister Abdul Ghani Othman said Johor will stop paying
Singapore for treated water once construction of its $105 million
water plant is completed in mid-2003, the Bernama national news
Abdul Ghani said Johor currently pays Singapore $1.31 million a
year in return for potable water. He said the deal seemed unfair to
Johor because it sold untreated water to Singapore for only $780,000
The price of untreated water that Malaysia supplies to Singapore
through Johor is one of several issues -- including border crossings,
airspace and disputed territory -- that have marred otherwise close
relations between the neighbors over the years.
Under agreements signed in the early 1960s that run until 2061,
Singapore pays Malaysia $0.01 per 1,200 U.S. gallons of untreated
Malaysia wants to discuss a price that may be adjusted from time
to time. Singapore says the rates were due for a review in the
mid-1980s, but having missed that, Malaysia has lost its legal right
to re-price the deal.
Abdul Ghani added that three water treatment plants presently
managed by Singapore's Public Utilities Board in Johor will be taken
over by the state government once Malaysia's first water supply
agreement with Singapore expires in 2011.
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