Nation

Environment ministry to submit paper on water tariffs, ICPT mechanism to cabinet next month

KUALA LUMPUR: The Natural Resources, Environment and Climate Change (NRECC) ministry will be submitting a paper on the mechanism for imposing water tariffs and Imbalance Cost Pass Through (ICPT) for states, to the cabinet by year-end.

Its Minister, Nik Nazmi Nik Ahmad, revealed that state governments had agreed on the need to review water tariffs at a recent National Water Council meeting.

"Our water tariffs are too low, and from what I have observed, most state governments agree (to a review of water tariffs).

"We will bring the paper on the mechanism for setting tariffs and ICPT for water to the cabinet before year-end, with the hope that we will allow for the setting of new tariffs for state governments in 2024," he said at the Dewan Rakyat today while answering the question from Datuk Mumtaz Md Nawi (PN-Tumpat).

Commenting on another issue, Nik Nazmi said that the ministry had identified several alternative methods to ensure the sustainability of water sources, including the construction of reservoirs, riverbank filtration (TAPS), underground reservoirs, and rainwater harvesting.

"Under the federal government's Third Rolling Plan (RP3) of the 12th Malaysia Plan (RMK12) this year, the construction of the Machang TAPS with a capacity of 500 million litres per day has been approved, with an allocation of RM650 million.

"This project is currently in the acquisition stage. It would provide sufficient raw water supply for Kelantan, particularly in the northern areas. These include high-demand regions such as Kota Baru, Bachok, and Pasir Puteh until 2030.

"The implementation of this project is crucial to ensure a consistently adequate supply of raw water, especially during drought, and to prevent any disruptions to the water treatment plants involved," he said.

Nik Nazmi also said that each state's water operator had undertaken preparatory measures to monitor the adequacy of raw water supply, covering aspects of river and reservoir levels to ensure sufficient raw water for water supply to consumers.

"If a water crisis occurs, the National Water Services Commission (SPAN) will coordinate support among state water operators, offering technical assistance and supply tanker trucks to the affected states," he said.

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