BANTING (May 30): The Ministry of Natural Resources, Environment and Climate Change is considering implementing the proposed review of water tariffs to provide a return on capital commensurate with the operational costs.

Its Minister Nik Nazmi Nik Ahmad said the federal government is aware that the financial sustainability of water operators plays a crucial role in the quality of water supply service delivery.

"We are aware that some states are still using old tariffs that have never been reviewed for over 20 years, and this matter is currently under the ministry's action.

“We will also ensure that any tariff increase will not burden the less fortunate," he said at the ground-breaking ceremony for the Rasau Water Supply Scheme in Kampung Seri Cheeding on Tuesday (May 30).

Also present was Selangor Menteri Besar Datuk Seri Amirudin Shari.

Nik Nazmi added that Selangor and Johor are the two best states in the management of non-revenue water (NRW) at below 30%.

Meanwhile, Amirudin said the result of pipe replacement efforts, leakage control and operational efficiency of water treatment plants had reduced NRW from 36% in 2016 to 27.8% currently, and the state is targeting 25% by 2025.

“We are also replacing 150km of pipes per year, a process which started in 2016 involving an overall length of 30,000km, including a 6,000km stretch of critical pipes to be replaced.

“We will do this in a planned and organised manner, because it involves economic considerations and high costs," he said.

Pengurusan Air Selangor Sdn Bhd (Air Selangor) in a statement said the first phase of the Rasau Water Supply Scheme is expected to be completed in 2025. This includes 489 hectares of nine former tin mining ponds that function as the country’s first dual-functional Takungan Air Pinggiran Sungai, with water supply capacity and flood mitigation.

The scheme also includes a water service system component involving the construction of the Sungai Rasau Water Treatment Plant and a water supply distribution system, with the Klang River abstracted as a new source of raw water supply, contributing 20% of total water production for Air Selangor in 2030.

The three-year second stage of the Rasau Water Supply Scheme will begin in 2027, with the total cost of the scheme amounting to RM5.54 billion.