SAJ Ranhill cannot supply water to Forest City, Johor State Assembly told


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ISKANDAR PUTERI:? The Johore state assembly today debated that water supply services company, SAJ Ranhill Sdn Bhd, might supply water to the developer of the Forest City project in Gelang Patah.

Forest City is a 1,386 hectare mixed development project, which includes a smart city on man-made islands along the Johor Straits.

Datuk Tengku Putra Haron Aminurrashid Tengku Haamid Jumat (BN-Kempas) said such a move would be against the state's government's decision that the developer source its own water supply for the project.

"I understand that the state government has conveyed this decision to the developer. Forest City has to draw water from a desalination process or through other mechanisms deemed fit.

“This will allow the state government to accord priority to domestic households,” he said, adding that rumours were rife that  Forest City would obtain water supply from SAJ Ranhill.

“If there is truth in the rumour, then  this just goes to show the developer's irresponsible attitude and total disregard for the state's government's clear directive to source its own water supply,” he said in the Johore state assembly here today.

He also said Johoreans should not suffer at the expense of the developer's profit-oriented motive which could spark a water crisis in the state.

Tengku Putra Haron revealed that the Forest City project, when completed, required more than 600 million cubic meters of water, daily, which was almost equal to Johor Bahru and Pasir Gudang's daily water supply.

Based on the high demand for water supply, he was concerned that SAJ Ranhill Sdn Bhd may compromise on domestic household supply.

"I am worried that this can create a very serious water crisis if the issue is not delved into deeply,” he added.

Tengku Putra Haron Aminurrashid also urged the state government to take control of SAJ Ranhill Sdn Bhd via a mandatory takeover for fear that it may fall into the hands of a foreign party.

He suggested that the state government, which had cash reserves close to RM4 billion, acquire SAJ Ranhill Sdn Bhd from its majority shareholder, Ranhill Holdings Bhd.

"It's possible that the major shareholder may sell SAJ Ranhill Sdn Bhd to a foreign party. If that happens, we will lose control of not only our water industry but our national sovereign asset,” he pointed out.

Tengku Putra suggested that the state government make a bid for the water supply company and if it is rejected, it should then make a mandatory takeover of  SAJ Ranhill Sdn Bhd under the Water Services Industry Act 2006.- Bernama

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