Kota bharu: Pipe replacement and water supply infrastructure development in Kelantan are not determined by an annual quota set by the National Water Services Commission (SPAN), but are instead guided by proposals submitted by the state's water operator.

According to BERNAMA News Agency, SPAN clarified in a statement that each submitted proposal undergoes an evaluation process focusing on project necessity, impact on service delivery, financial capacity, and the operator's ability to repay. The commission emphasized its role as a regulator rather than a financing body. Funding for water infrastructure is provided through the Water Asset Management Company (PAAB), contingent on the operator's financial health and repayment ability.

The clarification comes after claims by State Works, Infrastructure, Water and Rural Development Committee chairman Datuk Dr Izani Husin, stating that Kelantan has approximately 4,000 km of outdated pipes needing replacement. He noted that SPAN approves only around 150 km of pipe replacement per year, suggesting a prolonged timeline for completion.

Regarding operating licences, SPAN mentioned that operators meeting satisfactory performance and financial standards may receive licences for up to five years, based on key performance indicators. Operators needing performance improvements receive shorter licence periods to facilitate closer monitoring and corrective measures.

SPAN also highlighted that Air Kelantan Sdn Bhd's (AKSB) Business Plan for 2027 to 2031, which proposes replacing 1,035 km of pipes, is currently under review. During the previous period, 278 km of pipes were replaced, with 171.49 km currently in progress and an additional 26 km at the planning stage.

The commission reiterated its commitment to ensuring a sustainable and well-governed water supply. SPAN remains focused on transforming water services through comprehensive regulation, encompassing economic, technical, operational, and consumer-focused aspects.