KELANTAN RIVER

RESTORATION – PHASE I

ROAD BUILDER (M) HOLDINGS BHD

MAY 2003
 WHAT is restoration?

 Restoration is a wide ranging subject.

 In this case, can be divided into 3
phases.
- Phase I : channel water safety to
the sea without flooding its plains.
- Phase II : construction of dams to
control flow volume.
- Phase III : upgrade water quality i.e.
O & M.
WHAT is the time frame

 Phases I : 5 years.

 Phase II : 12 years

 Phases III : 50 years

 WHY restore?
 Phase I
- to enable river channel to take large
volume of water during monsoon
season.
- to provide additional channels for
extra water to flow to the sea

 This will prevent water from spilling

over onto the plains causing damage
to crops and properties.
 WHERE do we start?

 For economic reasons, start where the

impact of restoration effort would be
most felt, i.e. at populated area in
order reap benefit from money spent.

 Chosen location : Downstream of

Kuala Krai where most of the economic
activities are.
 WHEN do we start?
 Now!
 Negotiations and deliberations with
authorities can take up to ONE YEAR.
 If we start now,
- project will take off on the ground in
mid - 2004, and
- complete in mid – 2007
 This means : HALF of project period
will be under RMK8 and
HALF under RMK9.
 RMK8 AND RMK9
 The Government has approved this
project but have no allocation under
RMK8.

 If the project is secured, payment will

only be available under RMK9 which
begins January 2006.

 So, self-financing period is up to

end-2005 only, i.e. half the
construction period.
 HOW to do it?
 Use JICA 1989 Kelantan River study,
and modify to suit economic and
financial realities of today.

 JICA (1989) study proposed to:-

- Construct two dams i.e. at Lebir and
Kemubu.
- Carry out river improvement works
between Kuala Krai and Kota Bharu.
 Our Proposal

 Based on financial reality of today,

we propose to:
- Construct levees at designated
locations along Kelantan River
between Kuala Krai and Kota Bharu.

- Provide “flood by-pass system”

using existing rivers to allow excess
water to flow HARMLESSLY to the
sea.
 Project Cost of Phase I

 Total project cost : RM 150 million

 Project Timeline
Period 2003 2004 2005 2006 2007
No Activities Party
Month
1 Letter of Intent Govt. 0
2 Prelim design Company 1
3 Deliberation on prelim design Govt./Co. 1
4 Approval of prelim design Govt. 1
5 Preparation of detailed design Company 3
6 Deliberation on detailed design Govt./Co. 2
7 Approval for final design Govt. 1
8 Price negotation Govt./Co. 3
9 Approval by MOF Govt. 1
10 Letter of Award Govt. 1
11 Construction Company 36

11a Levee Along River Company 30

11b Flood Bypass System Company 30
 Financial Package

 Company will initially finance

the project
 Govt. will start to reimburse the
Company after progress is 50%
 Repayment period can be up to
5 years.
 Social Cost

Relocation of 1, 900 people

(1999 figure)

2,200 ha of land acquisition

15 bridges need upgrading

 Benefits to the Government

 Project is private fund-driven – initially.

 Economic activities during construction

period.

 Do not have to come up with heavy

capital to implement the project.
Benefits to the Government

Cost of project spread over five years.

Political mileage in an Opposition-

held state.
 Benefit to the People

 Less frequent and less severe flood

 Short term economic benefit due to

increased activities during
construction period

 Medium / long term benefits –

- Less property and crop damage
- Less interruption to lifestyle
CONCLUSION

• The is a DEFINITE NEED for the

project.
• An acceptable FINANCIAL PACKAGE
is needed to make Govt’s cashflow
leaner.
• KUB and Road Builder can make this
happen.
Thank you ….