Friday, August 6, 2010

Water dispute may result in higher price for consumers

THE cost of water to consumers could potentially go up if the water treatment plant for the transfer of water from Pahang is built in that state, according to those crunching the numbers. And the ones who have to bear the cost will be consumers in the Klang Valley.
That is bad news and if it is due to the reluctance of one or two parties, they should resolve their differences.
Even if it is a one or two sen rise per cu m of water it can set consumers back in their monthly bills by a few ringgit.
Clean water should be made available to all at reasonable prices.
Consumers in Kuala Lumpur and Putrajaya depend totally on Selangor for their water supply.
The question is, should consumers be subject to higher prices because the Selangor government and the Federal Government cannot agree on issues relating to water in the state?
The story of water has turned murky in the state.
The Government, in its bid to consolidate the water sector, had set up Pengurusan Aset Air Bhd (PAAB) to buy over all the water assets in Peninsular Malaysia and Labuan.
PAAB has been successful in some states but it faces a stumbling block in Selangor.
The water industry in Selangor is fragmented; there are several concession holders.
Offers have been made but to the concession holders, the offers are not compelling enough for them to part with their assets.
They are holding out for better terms.
But it is a stalemate where the concession holders are concerned.
That is one issue.
The other is that of the treatment plant.
The Klang Valley is going to face water shortages in the years to come and Pahang is an ideal source of water.
For that, an RM8bil tunnel is being built to transfer water from Pahang to the folks in the Klang Valley.
Works are in progress.
The ideal location for the water treatment plant is Selangor.
The issue here is that the state is not giving its approval to the Federal Government so that the treatment plant can be built.
The Federal Government wants to hurry things up, but the state says, “Take a ticket and wait for your number to be called.’’
If the state government does not act fast enough it will face a water crisis in 2014 and that means you can forget about your luxury baths three times a day.
Water will be rationed.
The state denies this will happen and the bickering continues.
Amid this, Pahang has offered land at its border with Selangor for the plant to be built.
Bravo to Pahang. It resolves one issue but not all as the plant on Pahang land could potentially mean higher costs given the distance and other logistical considerations.
Whatever the decision, consumers should not be held ransom by any one party.
(Published in The Star on August 6, 2010)

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