Kelantan Pipe Replacement Based On Proposals, Not Annual Quota - SPAN

PUTRAJAYA, May 11 (Bernama) -- Pipe replacement and water supply infrastructure development in Kelantan are based on proposals submitted by the state's water operator, not on an annual quota set by the National Water Services Commission (SPAN).

SPAN explained in a statement today that each proposal is assessed based on project necessity, impact on service delivery, financial capacity and the operator's ability to repay.

"SPAN acts as a regulator of the water services industry, not a financing institution. Funding for water supply infrastructure assets is channelled through the Water Asset Management Company (PAAB) and depends on the operator's financial position and repayment capability," the commission said.

Recently, State Works, Infrastructure, Water and Rural Development Committee chairman Datuk Dr Izani Husin reportedly claimed that Kelantan has about 4,000 km of obsolete pipes requiring gradual replacement.

He alleged that SPAN only approves approximately 150 km of pipe replacement annually, which would mean an excessively long timeline to complete the work.

On operating licences, SPAN noted that licences of up to five years may be granted to operators that meet satisfactory performance and financial standards based on established key performance indicators.

"For operators that still need to improve their performance, a shorter licence period will be granted to allow for closer monitoring and more effective corrective action," the statement read.

SPAN added that Air Kelantan Sdn Bhd's (AKSB) Business Plan for 2027 to 2031, which includes a proposal to replace 1,035 km of pipes, has only recently been received and is now under review.

The commission noted that in the previous period, 278 km of pipes were completed, 171.49 km are currently being replaced, and 26 km are at the planning and design stage. 

The commission reaffirmed its commitment to ensuring the sustainable and well-governed provision of clean water.

SPAN also remains dedicated to driving the transformation of water services through comprehensive regulation covering economic, technical, operational and consumer aspects.

-- BERNAMA