KUALA LUMPUR : The long-delayed RM9bil Selangor-Pahang inter-state water project would be opened for tender in the second half of the year, according to Suruhanjaya Pengurusan Air Negara (SPAN), chief executive officer Teo Yen Hua. 

The inter-state water project would ease the water shortage problem in Selangor by transporting fresh water from Pahang. 

Teo said PAAB was currently finalising details with the Negri Sembilan government on the corporatisation of the state's water supply department.

The corporatisation involved PAAB taking over the state government's loan in exchange for water assets, Teo said at the third annual Malaysia private funding initiative (PFI) programme conference yesterday.

He hopes the success of the deal with the Negri Sembilan government would pave the way for similar arrangements in other states.

Investment analysts expect the Selangor-Pahang water project to spin off many contracts for water pipe suppliers and engineering firms. 

They said water pipe makers had expanded their production facilities on expectation of the large-scale inter-state water project, which was unveiled more than five years ago. 

The delay in the implementation had left many water pipe suppliers with idle capacity due to scarcity of public contracts.

On the private funding initiative (PFI) scheme, a member of the National Implementation Task Force in the Prime Minister's Department, Datuk Dr Ismail Md Salleh, said the Government was expected to announce several mega projects under the scheme soon.

“The Government is already in the midst of approving a few major projects. They will be announced in the next couple of months.” 

He told StarBiz these projects would be the first batch of jobs to be dished out under the PFI scheme, which was unveiled under the Ninth Malaysia Plan (9MP) in March last year. 

Ismail said the PFI Masterplan was currently being drafted, adding that it would help the public understand the project guidelines.

The much talked about mega projects to be implemented under PFI include the second Penang Bridge and the Ipoh-Padang Besar double-tracking railway. 

Gamuda Bhd said last Friday the Government had agreed to its joint proposal with MMC Corp Bhd to implement the electrified double-tracking train project. 

The Government and the joint venture would commence negotiations on the formal agreement as soon as possible, the company told Bursa Malaysia .

Under the 9MP, the Government has allocated RM20bil for projects under the PFI scheme. 

The 9MP, particularly the PFI scheme, has raised hope that there would be more public projects for local contractors, whose business had suffered from the scarcity of government jobs in the past three years or so.

However, the conference participants, including university researchers and managements from construction-based companies, expressed dissatisfaction with the lack of details on the PFI scheme, which had somehow made it difficult for the private sector to participate in.