Kedah Mb 1985 Agreement Doesn T Entitle Penang To Free Water Supply Forever

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Kedah Menteri Besar Muhammad Sanusi Md Nor has expounded his call for the Penang state government to make an annual payment of RM50 million in compensation for drawing water from Sungai Muda, saying that the law enacted in 1985 does not entitle Penang to an eternal supply of free water.
Referring to Kedah and Penang (Alteration of Boundary) Act 1985 which allows Penang to draw water from its side of Sungai Muda, Sanusi said the agreement was meant only to “guarantee water supply from Ulu Muda which is located in the state of Kedah”.
“A guarantee only means guaranteeing water supply to Penang, not a guarantee of free raw water supply forever,” he said in a Facebook post today.

“No one can deny that the source of water flowing in the Sungai Muda begins 'upstream' in the forest area of Ulu Muda, Kedah Darul Aman.

“The water source requires sustainability and protection of the area to guarantee sufficient water supply to 4.06 million people of Kedah, Perlis and Penang,” said Sanusi, who said the cost of maintaining the area fell to Kedah.
“The Penang Water Supply Corporation (PBAPP) extracts 80 percent of their water source from the Sungai Muda daily which is 1,100 million litres a day and as the Kedah State Water Resource Board (LSANK) charges the Darul Aman Water Company (Sada) for supplying water to the people of Kedah, the same charge should be applied to the PBAPP,” he said.
He called for the 1985 agreement to be reviewed as the need for water supply is increasing alongside the need for development and safeguarding water resources.
“Accordingly, the cost should also be borne by Penang as it receives these benefits.
“What more, the cost of maintaining the reservation of Ulu Muda is increasing by the day,” he said.

Penang Chief Minister Chow Kon Yeow
Yesterday, Penang Chief Minister Chow Kon Yeow said the state government is willing to discuss water Sanusi's water compensation demands.
“I think the people do not want to see both states engaged in a ‘verbal war’ through the media but hope that a discussion is held...so I feel it is better that we discuss the matter,” he said.
He said Penang only extracted raw water from its side of Sungai Muda in line with international conventions.
Chow said he had discussed the issue with the Environment and Water Ministry in Putrajaya in October and the minister said that the important agenda at the ministry was to ensure all states had an adequate raw water supply.
Sanusi in his post also said that conditions have changed following the passing of the Water Supply Service Industry Act 2006 (WSIA 2006) approved in Parliament, which clearly separated the roles of water source management and water supply operations.
“From the perspective of social justice perspective, the PBAPP needs to be jointly responsible,” said Sanusi.
“PBAPP should pay water extraction charges from Kedah's raw water sources so that the benefits can be shared together for the citizens in both states.
“It's unnatural that Kedah needs to sacrifice wide forest lands and bear the maintenance cost of sources and flow, while Penang enjoys benefits and profit for free,” he said.
This issue resurfaced after PBAPP CEO Jaseni Maidinsa criticised the approval of largescale mining permits in Ulu Muda, saying it would jeopardise water supply in the three northern states, and called for the venture to be stopped immediately.
This came after Sanusi's announcement that Kedah had allowed a company to explore large-scale mining of "rare earth elements" (REE) in Ulu Muda, Sik, and Baling.

"The Environment and Water Ministry, the Natural Resources and Energy Ministry, and the National Security Council must work together to stop this dangerous venture immediately," said Jaseni. - Mkini

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