Source: Star, 2 August 2007

SEREMBAN: Water tariff in the state will not be increased for the next 10 years despite the impending corporatisation of supply and services, Mentri Besar Datuk Seri Mohamad Hasan said.

He said the state's Water Enactment 1920 would be amended at the sitting of the state assembly in the middle of this month to pave the way for the corporatisation.

“Once corporatised, the RM1.1bil we owe the Federal Government in loans and liabilities to improve water services here would also be absorbed by the federal authorities,” he said.

Mohamad said a new company, Syarikat Air Negri Sembilan (SANS), would be set up to replace the present state water entity.

“We have been paying the Federal Government RM30mil annually for the loan taken.

“Under the new arrangement, this amount would be paid by SANS. It will also pay the state RM10mil annually for our raw water,” he said, adding that the repayment of loans for water projects was causing a huge deficit in the state's annual budget.

He said once the matter was finalised, the state's borrowings would be reduced to less than RM100mil. 

Mohamad said the state water laws had to be reviewed to keep them in line with the setting up of the National Water Commission and the centralisation of water services in the country.

“We will appoint a state water resources director who will supervise SANS' activities,” he said, adding that the corporatisation would be for a 33-year period.

He said efforts would also be made to reduce the loss of non-revenue water, which now stood at 40%.