Stalemate may delay water-transfer project


  • Business
  • Friday, 23 Jul 2010

PETALING JAYA: The disagreement between the Federal Government and Selangor is likely to delay the full implementation of the Pahang-Selangor interstate water transfer project.

The construction of the project started in April despite facing some initial challenges.

“While the pace of the project is picking up, land acquisition may remain a major issue. This is because the Selangor government owns half of the land required for the project site.

“Hence, the progress of the water project could be delayed although some progress has been made recently,” an analyst said.

Analysts opined that the water restructuring issue in Selangor should not be muddled with the water-transfer project as the delay would only result in a water deficit in the Klang Valley and the federal capital.

Kenanga Research said the outstanding issues in Selangor should not be prolonged later than this year as they may derail the Federal Government ongoing initiatives for the water sector.

The Selangor government has yet to give its approval for the remaining 15 lots of land needed for the construction of a water treatment plant

HwangDBS Vickers Research said the initial part of the project, which is the RM1.3bil tunnelling package, had been awarded in May last year to Shimizu consortium together with IJM Corp Bhd, UEM Group and Nishimatsu.

“We understand it (the tunnelling package) is 14% completed so far. Recently, the George Kent consortium won RM318mil works for the Semantan intake and pumping stations works,” it said.

HwangDBS said the only portion of the project which had yet to be opened for tender was the RM4bil to RM5bil Langat 2 water treatment plant.

“The delay is due to the development order from Selangor which has yet to be obtained given the plant will be built in the state. The other portions – the Kelau dam and Semantan piping works – are opened for tender,” it said, adding that it represented another stalemate for the project and could explain why the Kelau dam has yet to be awarded.

However, the research house did not discount the Federal Government being “more assertive” in ensuring this project takes off as work on the tunnelling package has already started.

AmResearch believes that the ongoing Selangor water impasse will impede the roll-out of the water transfer project.

The research house said Pengurusan Aset Air Bhd (PAAB) had shortlisted up to 12 bidders for the Langat 2 project.

“With the tunnelling portion of the water-transfer project due to be completed by 2013, we reckon that awards for phase 1 of the main water treatment plant works estimated at RM2bil have to be dished out by year-end to keep within the project timeline,” it said.

A check with PAAB reveals that the 12 bidders were pre-qualified and tender for works have yet to start.

The group of 12 bidders are Gamuda and Biwater International, MMC and Salcon, Loh & Loh and UEM Builders, WCT and Sinohydro Corp, LGB Engineering, George Kent and Taliworks.

Others include LBH Group, Puncak Niaga (M) Sdn Bhd, IJM Construction Sdn Bhd, Kumpulan Perangsang Selangor Bhd, Hati Muda Sdn Bhd, Mewah Kota Sdn Bhd and Asia Baru Construction Sdn Bhd.

Yesterday, The Star reported that Selangor, Kuala Lumpur and Putrajaya would face an expected water deficit of 476 million litres daily in 2014 when demand exceeds supply.

According to the National Water Source Report 2000-2050 from the Economic Planning Unit, demand for treated water would grow between 2% and 3.5% annually for Selangor, Kuala Lumpur and Putrajaya, said the Energy, Green Technology and Water Ministry.

The ministry said the expected deficit would start this year when demand for treated water for the three areas totalling 4,391 million litres daily would exceed supply by 65 million litres.

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