Longstanding water agreement

• Under the 1962 Water Agreement, Singapore can draw up to 250 million gallons a day (mgd) of raw water from Johor at three sen per 1,000 gallons.

• Singapore sells treated water to Johor at 50 sen per 1,000 gallons, a price that is a fraction of the true cost of treating the water.

• Johor is entitled to buy up to 5 mgd of treated water under the 1962 Water Agreement. Singapore has, in practice, been supplying 16mgd of treated water at Johor's request.

• The agreement provides for a price review after 25 years. Malaysia, however, did not exercise the right in 1987.

• Malaysian Prime Minister Mahathir Mohamad, during his earlier premiership from 1981 to 2003, explained in 2002 that Malaysia did not ask for the review as it knew that any revision would also affect the price of treated water sold by Singapore to Malaysia.

• In 1990, PUB and Johor signed an agreement to construct the Linggiu Dam to increase the yield of the Johor River.

• Johor owns the Linggiu Dam, but Singapore paid more than $300 million for construction, land and operational costs, among others.

• The terms of the 1962 Water Agreement were reaffirmed between the two countries in January last year, at the 8th Singapore-Malaysia Leaders' Retreat.

A version of this article appeared in the print edition of The Straits Times on March 02, 2019, with the headline 'Longstanding water agreement'. Print Edition | Subscribe