This is in line with the extension of Indah Water Konsortium’s (IWK) concession agreement and the federal government’s aspirations for the company to be more financially sustainable.
“There is much potential for this discharged treated effluent to be reused,” said environment and water minister Tuan Ibrahim Tuan Man in a statement.
As of 2019, he said, Malaysia produced over 230 million litres of wastewater per day (MLD), which must be treated before it can be safely released into the waterways.
Tuan Ibrahim said the ministry aims to produce 1,500 MLD of recycled water from treated effluent by 2030.
“IWK has already presented its business plans to shift towards achieving financial, operational and environmental sustainability,” he said.
The government awarded IWK a 28-year concession to manage and maintain the public sewerage system in 1994 after Parliament passed a sewerage services law a year earlier.
Last October, the Cabinet made a decision to extend IWK’s concession, taking into consideration IWK’s “stellar performance”.
The new agreement allows IWK to explore non-tariff business activities which will reduce its financial burden and ensure the company’s sustainability, especially since tariffs have never been reviewed since 1994.
Environment and water ministry secretary-general Zaini Ujang spoke about the importance of non-tariff-based activities.
“The extension of the concession agreement also covers the implementation of non-tariff business activities by IWK, which includes producing recyclable water from sewerage by-products so that it can be supplied to industries as an alternative water source,” he said.
IWK chief executive officer Narendran Maniam said the company will be getting funds from the Sewerage Capital Contribution (SCC) for the upgrading of its public plants.
The amount of funds needed will depend on various factors including location, the number of people they serve and age.
“Once a detailed plan is laid out, IWK will request for the funds from the National Water Services Commission (SPAN), which oversees the SCC fund and will review all plans accordingly before giving its approval,” Narendran said.
Malaysian Water Association (MWA) president Mohmad Asari Daud hailed IWK’s role in managing the country’s sewerage system.
Before 1993, he said, the sewerage system was decentralised and came under the management of local authorities, leading to negative impacts on health and the environment.
When the government enacted the Sewerage Services Act 1993, IWK became the sole national sewerage concessionaire, given the mandate to operate and manage all public sewerage systems until now.
“The introduction of a systematic approach for a reliable and efficient sewerage system management has contributed greatly to protecting the nation’s public health, preserving its water resources, and enhancing environmental quality, leading to the long-term sustainability of water supply and the sewerage services industry,” Asari said.