MELAKA, May 29 — The federal government’s move to write off loans for the rural water supply project has allowed the development of water supply from Tasik Biru, Chinchin near Jasin to the Durian Tunggal dam in the state can be implemented early enough to ensure adequate water supply.

Melaka Chief Minister Adly Zahari said following the federal government’s decision, the state would be able to develop more projects including the water supply project to the Durian Tunggal dam worth about RM23 million.

He said the move was also seen to reduce the debt borne by the state government by RM143 million from the current RM900 million and the savings could be channelled to improve the well-being of the people.

“Therefore, Syarikat Air Melaka Berhad will be focusing on the water distribution project in order to overcome the problem of water supply that hit the state every year,” he told reporters at the Road Safety campaign and distribution of ‘Bubur Lambuk’ that was also attended by the Melaka Road Transport Department director Muhammad Firdaus Shariff here, yesterday.

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Adly said this when asked to comment on the federal government’s decision to write off the loan given to the state governments for rural water supply projects in 2001 and above, based on an outstanding balance as at Dec 31 last year which amounted to RM3.8 billion. — Bernama