SLIM RIVER, 5 February 2009 - Sime Darby Water Resources Sdn Bhd, launched its pilot groundwater project in its Cluny/Bedford estates in Perak today. It is expected that up to 50 million litres per day (Mld) will be produced from this area by the end of this calendar year.

Prime Minister Dato' Seri Abdullah Ahmad Badawi visited the groundwater development site at Batang Padang, Perak today where he was briefed on the progress of the project. Also present at the event was Tun Musa Hitam, Chairman of Sime Darby Bhd.

The demand for water in Malaysia is expected to grow significantly by 2010 to approximately 17,000 Mld when the country’s population reaches 30 million. Currently, surface water accounts for more than 98 per cent of water consumed in Malaysia which is a level of dependence that needs to diluted, especially since surface water is easily affected by extreme weather conditions. Groundwater offers a more reliable and sustainable source of water as long as it is abstracted correctly, utilizing appropriate methods and technology.

"This groundwater project will be developed over two phases. The first phase will see the production of 50 Mld by the end of the year and we expect that by the end of 2010, this will increase to 500 Mld," said Dato' Seri Ahmad Zubir Murshid, President and Group Chief Executive, Sime Darby Berhad.

He added that groundwater is not only environmentally friendly as it causes minimal disruption to the land surface area but it is also a sustainable source of water as it can be developed in stages to meet increasing demand. “Groundwater abstraction is not new technology and in countries such as Denmark 100% of the water consumed is from groundwater sources,” Ahmad Zubir said. “As we know Denmark has a strong agriculture sector and yet it uses groundwater.”

Other than Denmark, groundwater is also widely used in several other developed countries such as Germany, Switzerland, England, Australia and the United States among others. It is widely considered a sustainable source of water when recharge rates are taken into consideration and monitored as groundwater is abstracted.

To date, a total of 105 wells have been drilled in Cluny Estate with the biggest well capable of producing 5.5 Mld of water. Each well is between 100 meters and 300 meters deep. Wells of such depths serve to ensure that vegetation and the ground stability of the area remain unaffected. Wells which are less than 100 meters deep may not be as sustainable and there may be questions of vegetation loss and ground instability.

This pilot well field in the Cluny/Bedford estate area will have its own water treatment plant from where the water will be transferred to a reservoir in Southern Perak before being distributed across the state.

Dato’ Seri Ahmad Zubir Murshid explained that Batang Padang was specifically identified for this pilot project as this area enjoys a high annual rainfall of almost 3,300mm and contains favourable natural fracture & fault lines as well as large areas of undeveloped land and water catchment areas.

Groundwater is expected to provide another steady and long-term revenue stream for Sime Darby’s Energy & Utilities Division. Sime Darby hopes to work with the state authorities and the federal government in order to ensure that up to 30% of the nation's water supply originates from groundwater sources by 2020.

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