Federal government provided RM17.7b to state governments under water industry restructuring - minister

UALA LUMPUR (Oct 16): The Federal government had provided a total RM17.68 billion to 10 state governments as part of the water industry restructuring since the agreements were signed between the states and Putrajaya, said Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad. 

In a written reply to a question by Datuk Seri Tuan Ibrahim Tuan Man [PN - Kubang Kerian], Nik Nazmi said that the biggest funding went to Kedah, with RM3.13 billion, for the state to develop its water resources. 

This was followed by Negeri Sembilan (RM2.8 billion), Selangor (RM2.67 billion), Penang (RM1.9 billion), Pahang (RM1.72 billion), Kelantan (RM1.67 billion), Melaka (RM1.3 billion) and Perak (RM1.2 billion).

The state with the smallest allocation is Perlis (RM329.9 million), followed by Johor (RM961.8 million).

“The restructuring allows the state government to get access to funding in the form of grants for the purpose of developing water resources projects, such as dams, riverside water catchment, and barrages,” the minister said in a written parliamentary reply.

The amount is based on funding by the government for water projects to the states, from the time the migration agreement was finalised up until June 2023, he added.

The only state which has not inked the agreement with the responsible body, Pengurusan Aset Air Bhd (PAAB), is Terengganu.

It was reported in May 2022 that Terengganu Menteri Besar Datuk Seri Dr Ahmad Samsuri Mokhtar said that the state will not enter into the restructuring agreement, and that its water assets remain state-owned.

The restructuring was first mooted in 2003, which eventually made water supplies and services as shared responsibility between the state and federal governments, where ownership of the water infrastructure assets is taken over by PAAB, while the state water operators will lease the assets from PAAB and concentrate its capital expenditure resources solely on providing services and improving operational efficiency.

By Adam Aziz / theedgemalaysia.com

16 Oct 2023, 08:57 pm

https://theedgemalaysia.com/node/686369