There is something in the water from Malaysia
by Bertha Henson
SO, MINISTER for the Environment and Water Resources Masagos Zulkifli said this in Parliament yesterday: “If we needed any additional water, where would it come from? How much would that additional litre cost? That is what we call the Long Run Marginal Cost (LRMC). That is the cost which consumers must see.’’
Except that we can’t see it because LRMC is a state secret. Revealing this would compromise future bids to build desalination plants. I don’t know how this works but it’s probably like a businessman who doesn’t want to tip his hand to a potentional contractor by telling him what kind of money he has to pay him.
So you can’t see LRMC but you have to “feel’’ it. Which is why the price of water is going up by 30 per cent after staying put for 17 years.
He did give an idea of what went into the computation: a blend of NEWater and desalination costs. Singapore would have to depend more on desalination in the future as there’s only so much water in an urban city that can be recycled as NEWater. And desalination is much more expensive than making NEWater.
Going by what he said, if there was no NEWater invented in 2002, the price of water would have shot up. That’s because after threats by Malaysian elements to cut off water supply from Johor in 1997, we scaled up desalination. To match the cost would have meant a jump in water tariffs. Price did go up from 1997 to 2000 before holding steady. Was there much of a fuss then? A check with the archives showed that Singaporeans were accepting of the increase. Doubtless, it was because we were faced with a clear and present danger of going without water.
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This little history lesson Mr Masagos gave is more illuminating than merely general statements about water security.
Minister in the Prime Minister’s Office Chan Chun Sing put it more starkly: “How many more desalination plants and NEWater plants must we build in order for water to never be a weapon pointing at our head?”
He also warned that water needs of people in the southern Malaysian state are increasing, and Malaysia is also extracting water upstream of Linggiu Reservoir — which Singapore depends on to draw water reliably from the Johor River.
This is a point that is seldom stressed, that Malaysia’s “upstream” venture, Johor’s Semangar and Loji Air water treatment plants, along the Johor river means less water “downstream” for Singapore to extract. Can we rely on Johor for freshwater? We already have 17 reservoirs in Singapore.
He sounded a little testy when he suggested that MPs should get the basics right: That water is an existential issue. The former army chief added that a whole generation that has worn uniforms know what this means.
Which is as good as saying, do you really want to see the day when fresh water supply from the north gets cut off or Singapore is subjected to some kind of blackmail over a resource that countries go to war over?
I suppose politicians are constrained from saying things this bluntly but it’s a logical conclusion given the threat that the Linggiu Reservoir might run dry this year if hot weather persists, as Minister for Foreign Affairs Vivian Balakrishnan noted last month in a parliamentary reply. The water issue was raised at the leaders’ retreat in December with both Singapore and Malaysia pledging to look for new ways to increase fresh water supply.
According to the 1962 Water Agreement between the two countries, PUB can draw up to 250 million gallons (mgd) of water from the Johor River each day. In return, Johor is entitled to buy treated water of the same volume as up to 2 per cent of the water extracted by Singapore on any given day, or about 5 mgd if Singapore draws its full entitlement of water from the Johor River.
Dr Balakrishnan described the agreement as “sacrosanct to Singapore”.
“Should Linggiu Reservoir fail, there will be many more occasions when it will not be possible for PUB to abstract its entitlement of 250 mgd, and the current abstractions by Johor’s Semangar and Loji Air Water Treatment Plants will also be affected. This will cause severe problems for both Malaysia and Singapore.”
I can also speculate that the water increase was timed now because of the dire straits of the Linggiu reservoir which was at 27 per cent capacity on Jan 1.
But there’s still this niggling question of why the G didn’t look ahead and had to impose such a high increase. Was it so happy with NEWater being a substitute? Did it get complacent over the water problem or think there’s always enough in the public coffers to build yet another plant? Because it’s likely.
If the water price hike was put starkly and clearly in strategic terms, it’s likely that people will be more willing to pay the price.
Featured image from TMG file.
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