WATER SUPPLY FROM RIAU ISLANDS (Progress of discussions with Indonesian government)

Mr Zulkifli bin Baharudin asked the Minister for Trade and Industry what is the status and progress of discussions with the Indonesian government with regard to the possibility of Singapore obtaining water supply from the Riau Islands to meet our long-term needs.

Mr Lee Yock Suan: Mr Speaker, Sir, on 28th June 1991, Singapore signed a water agreement with Indonesia. It enables Singapore to develop water resources in the Riau Province of Indonesia and draw up to 1,000 million gallons per day of water for 100 years. PUB has identified Pulau Bintan and Sungei Kampar as possible sources of water.

The agreement provides viable supplementary or alternative sources of water for our long-term needs. Its implementation will be carried out at the appropriate time, after evaluating the various options, including desalination.

Water is a strategic resource and Singaporeans should be regularly reminded to conserve water.

Mr Zulkifli bin Baharudin: Sir, I would like to ask the Minister how much of this constitutes our total water needs. That means, how much of water from Riau will constitute our total water consumption in Singapore?

Mr Lee Yock Suan: Our current consumption is about 280 million gallons per day. So 1,000 million gallons per day is about three times that volume.

Mr Choo Wee Khiang (Jalan Besar): Sir, I wonder whether the Minister would be able to highlight to the House the latest position of our Water Agreement with Malaysia.

Mr Lee Yock Suan: Sir, I presume he is asking about the latest situation on the negotiations.

Mr Choo Wee Khiang: Yes.

Mr Lee Yock Suan: The talks are still on-going. Since the last meeting, there has been not much progress. But we are still hopeful that at some stage we will be able to come to an agreement. Because we are interested to buy water and if they do not sell the water to us, it just goes to waste. So it is really a commercial deal. It is a single buyer, single seller, kind of situation.

Mr Chiam See Tong (Potong Pasir): What is the cost of buying water from the Riau Islands compared to that from Malaysia and desalination?

Mr Lee Yock Suan: Water from Bintan is expected to be competitive and it is probably cheaper than desalination. Water from Kampar is likely to be expensive because it is a long way away and we have to put in a very expensive pipeline. But as I have mentioned in my answer, these sources are viable. It is a matter of deciding which are the alternatives we want to adopt.

Mr Choo Wee Khiang: Sir, bearing in mind the problem we have with Malaysia pertaining to the CIQ matter, would the Minister envisage any problem with our negotiations with Malaysia and will the Minister tell us whether there is going to be a deadline in terms of finalising the negotiations?

Mr Lee Yock Suan: Sir, I suppose the current state of relations must affect the negotiations. The CIQ is one issue. But we should try and keep the issues separate. We need water. The first Agreement which allows us to draw up to 90 million gallons of water per day is expiring in the year 2011. So we are still very keen to buy water. As I said, if we do not buy the water from them, it will just be discharged into the sea and it is of no value to them. So I hope it will be seen in the light that it is of mutual interest to come to an early agreement.

Mr Zulkifli bin Baharudin: I would like to ask the Minister how much and how long it would take to build the necessary infrastructure to bring water from the Riau Islands to Singapore. Secondly, could the Minister tell the House when we are likely to expect the first drop of water to come from the Riau Islands?

Mr Lee Yock Suan: It is likely to take a few years to build the pipeline from Bintan, the reservoir and so on. Also, we have to agree on the terms, for example, how to keep the water clean, how much to pay for the resettlement and so forth. But it is well within the time frame. We do not need the first drop until 2011. So we still have another 13 years.

Dr Lee Tsao Yuan: I would like to ask the Minister whether, in the light of the current difficulties with Malaysia, the Government would consider accelerating its plans for desalination.

Mr Lee Yock Suan: Sir, we continue to proceed with our plans for the first desalination plant of 30 mgd, based on the multi-stage flash evaporation process. So those plans are in hand and we are in the process of preparing for that. We will work within the time frame where necessary. There is no need for us to hurry and do it just because of the problems. Because when we bring in the plant, we must operate it. So we have this window when we must put in the plant, and our plans are well in hand. We are proceeding as we have announced previously.

Dr Lily Neo: May I ask the Minister if there is a problem in getting fresh catchment areas in the Riau Islands due to the uncontrolled dense population there?

Mr Lee Yock Suan: Sir, the problem could be more in Bintan because it is a small island. If a lot of immigrants come in, it could affect the reservoir area. But the Kampar area is enormous. So we think there should be no problem there.

Mr Low Thia Khiang: Would the Minister assure this House that even in 2011, when the first Water Agreement with Malaysia expires, Singapore would not face the problem of water supply?

Mr Lee Yock Suan: Sir, I can assure the House that that would be the case. As I have mentioned, our plans are well in hand for us to put up the first desalination plant. So it is just a matter of putting in the money. The technology is proven. It has been done in so many other countries. So long as we are able to pay and buy the energy and pay for the plant, we can have the water.