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New Straits Times: S'pore water deal to be reviewed


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Here we go again... [shakehead]

S'pore water deal to be reviewed

 

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Sim Bak Heng

Monday, Feb 17, 2014

JOHOR BARU - For the first time in 53 years, the raw water agreement between Johor and its neighbour across the Causeway, Singapore, is set to undergo a review.

 

The Attorney-General's Chambers has given the Johor government the green light to reassess the rate charged for the raw water it supplies to Singapore, which has been in place since 1961.

 

Following the move, Johor is expected to raise the rate sometime this year.

 

It will also embark on a "zero water dependency" programme so that it would no longer need to purchase treated water from Singapore in the future.

 

Although the rate has yet to be announced, it is believed that the state will stick to the rate proposed during the tenure of former Prime Minister Tun Dr Mahathir Mohamad, which was 60 sen per 1,000 gallons of raw water.

 

Currently, under the terms of the Malaysia-Singapore Agreement in 1961 and 1962, Singapore's Public Utilities Board (PUB) purchases raw water from Johor at 3 sen per 1,000 gallons (4,546.09 litres) and sells the treated water at 50 sen per 1,000 gallons to Johor.

 

Johor sells 250 million litres of raw water to Singapore daily, and buys two per cent of the total back from them in the form of treated water, equivalent to five million litres daily.

 

State Public Works, Rural and Regional Development Committee chairman Datuk Hasni Mohammad said the state executive council had discussed and raised the matter with the Federal Government last August.

 

Since then, the Attorney-General's Chambers has been studying the legal aspects of the raw water agreement inked between the two countries more than five decades ago.

 

"Early last month, we received a favourable reply from the A-G's Chambers, with regards to the legal aspects of the revised rates," he said.

 

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"The A-G's Chambers met a Johor legal advisory team in Kuala Lumpur in early January and told them that we have the right to review the rate. With the green light, it is just a matter of time before we come up with the new rate."

 

Hasni said the state government was anticipating that when the rate of raw water rate is increased to 60 sen per 1,000 gallons, Singapore would also hike the rate of treated water sold to Johor.

 

In view of this, he said Johor would launch a "zero water dependency" programme by June this year. Under the programme, the state government will lay more pipes and improve the capacity of water treatment plants.

 

"We hope to accomplish the programme within a year, which is by June next year. Once we have accomplished the programme, Johor will be self-sufficient and does not have to buy treated water from Singapore," said Hasni.

 

He said raising the price of raw water was long overdue and Malaysia had been doing a social service by selling raw water to Singapore at a low rate for too many years.

 

He said the new rate will reflect the actual price of raw water.

 

(source: http://news.asiaone.com/news/malaysia/spore-water-deal-be-reviewed )

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We have to be fair to Malaysia also

 

3 sen per 1000 gallons! It is an insult actually considering how valuable fresh water is now.

 

since when did the PAP not raise prices for things they have control over for 50 years.

 

Imagine being able to buy something from our government at 1961 prices.....

Edited by Aventador
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3 sen to 60 sen per 1,000 gallons.

 

So means we can sell treated water back at....10 ringgit per 1,000 gallons? [grin]

 

 

i think they need us more than we need them now.. ;) i think the cost of treating water is way above 60sen..

 

maybe we could dun buy raw water from them... and sell them treated water .. ha hahaha :P

 

 

Edited by ShepherdPie
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I think it is quite funny. 3 sen per 1000 gallons and we sell them back at 50sen per 1000 gallons!

 

You have to give credit to whoever negotiated the deal on our side... he was a damn good salesman!

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I think it is quite funny. 3 sen per 1000 gallons and we sell them back at 50sen per 1000 gallons!

 

You have to give credit to whoever negotiated the deal on our side... he was a damn good salesman!

 

kudo to Late Mrs Lee lor :P she is the one that sneak this into the parting treaty.

Edited by ShepherdPie
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When Singapore separated from the Malaysian Federation, Kwa drafted the clauses in the Separation Agreement for the guarantee of the water agreements between the Malaysian state of Johor and Singapore. This guarantee was done via a constitutional amendment to the Federation of Malaysia's Constitution

 

 

 

yup.. she is the one ..

 

http://en.wikipedia.org/wiki/Kwa_Geok_Choo

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We have to be fair to Malaysia also

 

3 sen per 1000 gallons! It is an insult actually considering how valuable fresh water is now.

 

since when did the PAP not raise prices for things they have control over for 50 years.

 

Imagine being able to buy something from our government at 1961 prices.....

 

If they don't sell to us, these water will flow into the longkangs, rivers and seas. It is a win-win deal for both mah.

 

BTW, the water is not treated. Selling raw, untreated water which is not fit for consumption at 3 cents per gallon is still good income opportunity compared to having it flowed away.

 

Edited by Kangadrool
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We have to be fair to Malaysia also

 

3 sen per 1000 gallons! It is an insult actually considering how valuable fresh water is now.

 

since when did the PAP not raise prices for things they have control over for 50 years.

 

Imagine being able to buy something from our government at 1961 prices.....

 

Well, a contract is a contract.

 

Any amendments/changes need the concurrence of both parties, not unilaterally decided to be such and such dictated by one side.

 

BTW I thought we have handed over some PUB facilities in JB to them already? They should be doing their own treatment already yes?

 

Well, a contract is a contract.

 

Any amendments/changes need the concurrence of both parties, not unilaterally decided to be such and such dictated by one side.

 

BTW I thought we have handed over some PUB facilities in JB to them already? They should be doing their own treatment already yes?

 

We have actually handed over the treatment plants and a pump house along Sg Tebrau and Sg Skudai and four reservoirs in Gunung Pulai in 2011:

 

http://news.asiaone.com/News/AsiaOne%2BNews/Singapore/Story/A1Story20110826-296255.html

 

And we are still holding on to the Linggiu Dam and Johor River water treatment plant.

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We have to be fair to Malaysia also

 

3 sen per 1000 gallons! It is an insult actually considering how valuable fresh water is now.

 

since when did the PAP not raise prices for things they have control over for 50 years.

 

Imagine being able to buy something from our government at 1961 prices.....

 

Ya lor.. I think should treat Johore fairly too.. 3sen is too low.. But while I hope that the rise in price wouldn't affect Singapore utilities (ultimately, our bills), I have a strong feeling that it will. Meh..

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Ya lor.. I think should treat Johore fairly too.. 3sen is too low.. But while I hope that the rise in price wouldn't affect Singapore utilities (ultimately, our bills), I have a strong feeling that it will. Meh..

 

The extra cost would have to come from somewhere, somehow.

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We have to be fair to Malaysia also

 

3 sen per 1000 gallons! It is an insult actually considering how valuable fresh water is now.

 

since when did the PAP not raise prices for things they have control over for 50 years.

 

Imagine being able to buy something from our government at 1961 prices.....

 

yalor....

 

our transport fare had been increasing 4 ~ 6 cents every 2 to 3 years... :ph34r:

 

3 sen since 1961 ... [sweatdrop]

Edited by Picnic06
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Ya lor.. I think should treat Johore fairly too.. 3sen is too low.. But while I hope that the rise in price wouldn't affect Singapore utilities (ultimately, our bills), I have a strong feeling that it will. Meh..

 

I think we treat them fairly leh. If u read into it, we build n maintained all the infrastructure, pipes, pump house n treatment plants for them for free all these years and once contract finished, we handed it over to them FOC.

 

They no need pay a single sen for it.

 

 

Shouldnt they pay us back for maintenance and building of infrastructure when we handed back to them FOC?

 

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This is a raw water and it is easier to convert into clean water and cheaper as compared to desalination.

 

To be fair 60 sen per 1000 gallon might be too expensive but 3 sen also too cheap.

 

I think 30 sen would be ideal and singapore sell to johor at 90 sen

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