Sime Darby Berhad - Energy & Utilities
Sime Darby Energy & Utilities
Water ManagementWater Management


FAQs
  1. Malaysia is a tropical country, blessed with a high level of rainfall. Why do we need to abstract groundwater?
  2. What is the level of groundwater usage in Malaysia?
  3. Where is the location of the project? How big is it? Why is the area chosen?
  4. What is Sime Darby’s plan in extracting this groundwater resource?
  5. What is the current status of this project?
  6. It looks like it is a big project which needs a major financial commitment. Isn’t it cheaper to utilise surface water?
  7. Is this project sustainable?
  8. The Environmental Impact Assesment (EIA) report by Sime Darby did not mention how much water reserves are available, for the project to be viable.
  9. Some NGOs are not convinced that the state-of-the-art technology to be used by Sime Darby in the project would not harm the environment.
  10. There are claims that the abstraction of groundwater will cause reductions in river flow and surface water, including wetlands, lakes and springs.
  11. What about claims that living organisms that depend on the availability of groundwater will be affected and this will slowly eliminate the ecosystem.
  12. Abstraction will also allow the intrusion of sea water through seepage to fresh water area. This will also impacts the swamps and seaside ecosystems.
  13. What about the occurrence of sinkholes as soil stability will be affected and the reduction or extraction of groundwater will cause a drop in ‘pore pressure’ for soil stability.
  14. Overall, it is not a sustainable activity to be done and it is not environmental friendly. And Sime Darby, being a Government Linked Company (GLC) would be working against the government-declared policy of embracing Green Technology.
  15. Groundwater abstraction affects oil palm and other vegetations.
  16. There are claims from FOMCA that experts engaged by Sime Darby to manage the study and this project are undergraduate students.
  17. There were allegations by WECAM (Water and Energy Consumer Association of Malaysia) that Sime Darby has offered “financial and technical assistance” as well as a free trip to South Korea to silence opposition to the project.
  18. WECAM also claimed that when an expert from United States warned us about the usage of groundwater that destroyed their ecosystem in a seminar recently in KL, Sime Darby has used its influence to silence the matter.
  19. Sime Darby is a big conglomerate with diverse business activities. Isn’t this project just another way to exploit natural resources and make a quick profit?


  1. Malaysia is a tropical country, blessed with a high level of rainfall. Why do we need to abstract groundwater?
    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 be diluted and urgently addressed, especially since surface water is easily affected by extreme weather conditions.

    This is a matter of grave concern for the whole country and all responsible organisations should be looking into addressing this imbalance in our national water supply.

    The utilisation of groundwater will reduce the dependency on surface water resources and improve the sustainability of water supply services in the face of impending climate change as well as aiding the conservation of the environment.

    Groundwater offers a more reliable and sustainable source of water as long as it is abstracted sustainably. These include proper control and monitoring activities as well as utilizing appropriate methods and technology.


  2. What is the level of groundwater usage in Malaysia?
    At this moment, usage of groundwater for public water supply can be found in Kelantan, Perlis, Terengganu, Sabah and Sarawak.

    Kota Bharu in Kelantan relies totally on groundwater, which is abstracted from four well fields. The technical details are as follows:
    Design capacity: 155 Mld
    Operating capacity: 134 Mld
    Sustainable yield: 176 Mld
    Annual recharge: 470 Mld

  3. Where is the location of the project? How big is it? Why is the area chosen?
    The project is located in Batang Padang District in Perak, which covers an area of approximately 2,700 Km 2 . Sime Darby chose the area because several of its estates are located within that District, including the Cluny-Bedford Estate. Furthermore, the area has high annual rainfalls (2,500 mm – 3,300 mm) and has large areas of relatively undeveloped land, including forest reserves and designated water catchment areas.

    The district contains significant fracture and fault zones associated with the Main Range Granite in the east of the area and to the metamorphic sediments abutting the granite. These represent regions of fractured rocks containing potentially good quality water, and are the main target areas for the development of groundwater resources.

    The advantages of Batang Padang for large scale sustainable groundwater development are as follows:

    • Proximity to Selangor
    • Greenfield - low risk against pollution
    • High recharge rates
    • Pristine forest-catchment areas
    • No risk of saline intrusion
    • Low risk of subsidence
    • Low private utilisation of groundwater
    • Low population density

  4. What is Sime Darby’s plan in extracting this groundwater resource?
    Sime Darby plans to develop 500 million liters per day (Mld) of groundwater supply from 10 well fields (each with a capacity of 50 Mld). The development will be undertaken in two stages
    • 1 st stage - development of 50 Mld pilot well field by 31st December, 2009
    • 2 nd stage - development of the remaining 450 Mld from 9 well fields. The 500 Mld groundwater supply is expected to be operational by 31st December, 2012.

  5. What is the current status of this project?
    1 st stage - 50 Mld Groundwater Supply
    The investigative phase for the 50 Mld pilot well field within the Cluny-Bedford Estate is nearing the end stage. To date, 141 wells have been drilled and many have located high yields exceeding 0.7 Mld. The biggest water find is a well producing some 5.5 Mld of water based on airlift test. Presently, the work is focused on performing aquifer tests to determine sustainable yield and managing aquifer recharge (MAR).

    2 nd stage - 500 Mld Groundwater Supply
    The consultant completed the feasibility study on the 500 Mld sustainable groundwater supply project in May 2009. It was concluded that it is feasible to abstract 500 Mld from the southern part of the Batang Padang District (the area to the south of Bidor).

    Preparation is being made for the appointment of the consultant for the development of the remaining 450 Mld sustainable groundwater supply and detailed design of water treatment as well as engineering infrastructure.


  6. It looks like it is a big project which needs a major financial commitment. Isn’t it cheaper to utilise surface water?
    Not exactly as the rule of thumb in comparing the cost between treating surface water and groundwater is that it costs 5 times more to treat surface water, in other words, the cost for groundwater treatment is a fifth of surface water treatment. At the same time, groundwater is cleaner that surface water due to the inexistence of suspended solids.

    Another rule is that it costs 1.5-2 times more to establish groundwater wells than direct surface water abstraction sites. When it comes to the construction of dam, groundwater development is a better option because we can do away with environmental and social impacts consequent to the inundation of pristine forests that affect both flora and fauna as well as the displacement of the population.

    The often quoted groundwater transfer project is the Great Man-Made River Project (GMMR) in Libya. Studies were conducted to establish whether it was more economical to move to the source of water in the desert or to transfer water to existing population centres. It was concluded that the latter was a more viable option. In addition, comparisons were made to other water supply alternatives (desalination, transportation by ships or transferring portable water by pipeline from southern Europe), and the results showed that it was more economical and feasible to transfer water from the desert in the south to the population centres in the north. The quantity of water obtained per Libyan Dinar is as follows:

    GMMR Project – 9.00 m 3
    Transportation by ship – 1.05 m 3
    Desalination – 0.79 m 3
    Pipeline from Europe – 0.74 m 3

    Quantity of Water per Libyan Dinar

    GMMR Project consists of 1,300 wells and can produce 6,500 Mld.


  7. Is this project sustainable?
    Sime Darby wishes to state that groundwater is indeed a sustainable and reliable source of water supply if abstracted correctly, that is with adequate controls and monitoring and using appropriate methods and technology. This fact has been proven in countries including Denmark where almost 100% of the water used is sourced from groundwater.

    Other than Denmark, groundwater is also widely used in several other developed countries such as Germany, Switzerland, England, Australia, South Korea 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 abstraction is controlled by the authorities and the operator is required to monitor the impact of the groundwater abstraction on the environment.

    There are some negative consequences from groundwater utilisation in the developed economies but these are small compared to the contributions made by groundwater to the socio-economic progress of these nations. Generally, these negative consequences occur under these circumstances:

    1. The authority has no control on groundwater development;
    2. Over-abstraction of groundwater occurs for many years; and
    3. Geological conditions permit the consequences to happen.

  8. The Environmental Impact Assesment (EIA) report by Sime Darby did not mention how much water reserves are available, for the project to be viable.
    The EIA for the groundwater project was approved by Department Of Environment (DOE) Perak on 22 nd February 2008. In the report, the direct recharge rate and the groundwater storage or water reserve are clearly stated on pages 4-27 and 4-28.

    The annual direct recharge rate (the annual rainwater that infiltrates into the ground) is 1,935 Mld and the groundwater storage or reserve is at 1,369 billion litres. These EIA reports are in line with studies undertaken by United Nation agencies, which concluded that over 95% of the Earth’s useable fresh water is stored as groundwater.

    DOE Perak had formed a panel of experts to evaluate the Sime Darby EIA report before issuing its conditional approval. Sime Darby had to comply with 23 conditions to realise the groundwater project, covering the investigation, development and operational phases.

    The comprehensive conditions issued by DOE Perak address all known impacts from the groundwater project. They covered all concerns raised from over-abstraction of groundwater resources, such as declining water table (it may affect rivers and lakes), saline water intrusion (it may lead to degradation of groundwater quality), occurrences of sinkholes as well as land subsidence (that may cost lives and damage to properties and infrastructures).

    EIA is a planning tool and the decision to proceed with any project is based on the findings of pre-feasibility and feasibility studies.


  9. Some NGOs are not convinced that the state-of-the-art technology to be used by Sime Darby in the project would not harm the environment.
    The state-of-the-art technology that will be utilised by Sime Darby in the groundwater project promotes environmental conservation. Besides improving the success rate of production well drillings, the technology will also ensure the construction of efficient and longer lasting wells, efficient pumping systems as well as water treatment plants and continuous on-line monitoring of the water supply operations with respect to health risk, environmental conservation and security of water supplies and infrastructure.


  10. There are claims that the abstraction of groundwater will cause reductions in river flow and surface water, including wetlands, lakes and springs.
    This claim is invalid for groundwater abstraction from unconfined aquifers away from rivers and other surface water bodies as well as from confined aquifers.

    However, it is valid if the abstraction is done in unconfined aquifers and when undertaken close to rivers and other surface water bodies. But the impact due to groundwater abstraction on river flows is negligible compared to surface water abstraction from both direct abstraction from rivers and artificial reservoirs behind dams.


  11. What about claims that living organisms that depend on the availability of groundwater will be affected and this will slowly eliminate the ecosystem.
    This claim is not true as since under natural conditions, water tables fluctuate that is, water tables are high (close to the ground surface) during wetter months and low during drier months.


  12. Abstraction will also allow the intrusion of sea water through seepage to fresh water area. This will also impacts the swamps and seaside ecosystems.
    This claim is only valid if abstraction is done in coastal unconfined aquifers and when groundwater abstraction is at a rate that reduces freshwater pressure and results in upconing of seawater below the wells.
    ( upconing refers to the rise of the interface between freshwater-saline water that can result in saline water entering the wells ).

    For the Sime Darby project, work are only done in confined aquifers as shallow coastal aquifers can be safely developed by controlling the rate of groundwater abstraction and through the use of horizontal wells.

    Groundwater abstraction from coastal confined aquifers is safe and they are many noted discoveries of freshwater springs in the seabed. Offshore drilling for oil also noted the occurrences of freshwater at depths below the seabed.


  13. What about the occurrence of sinkholes as soil stability will be affected and the reduction or extraction of groundwater will cause a drop in ‘pore pressure’ for soil stability.
    We would like to stress the point that there have been no sinkhole occurrences since the start of the project until now. There are many cases worldwide that through best groundwater management practices, it is safe to abstract groundwater in karstic limestone aquifers.

    Occurrence of sinkholes normally resulted from groundwater abstraction in karstic limestone aquifers and it is associated with high groundwater abstraction and improper well design.


  14. Overall, it is not a sustainable activity to be done and it is not environmental friendly. And Sime Darby, being a Government Linked Company (GLC) would be working against the government-declared policy of embracing Green Technology.
    Best groundwater management practices lead to sustainable groundwater development that benefits both socio-economic development and environment as proven in developed economies.

    Sime Darby is promoting Green Technology through the sustainable development of groundwater. Statement has been issued in Europe that after more than 250 years of developing public water supply systems, it was concluded that the most sustainable way of sourcing water for public water supply is through groundwater development.

    Sime Darby regards sustainable groundwater development as green technology because of the following benefits: its impact on rivers and lakes is much less compared to direct water abstraction from rivers and lakes, and; it does not involve inundation of pristine lands when compared to the construction of dams for surface water development (no inundation of forests and displacement of people and wildlife).

    Furthermore, the production of sludge from groundwater treatment is very much less compared to the sludge produced from river water treatment because groundwater is crystal clear. Studies have indicated that groundwater treatment produces 21g sludge per cubic metre of treated water whilst river water treatment produces 150 g sludge per cubic metre of treated water.


  15. Groundwater abstraction affects oil palm and other vegetations.
    Vegetation growth depends on rain water and in the absence of rain water, vegetation wilts and dies off. This explains the phenomenon of thick vegetation in rain forests and sparse vegetation in semi-desert or desert areas as well as the need for irrigation to grow crops during dry season or to grow crops in semi-desert or desert areas. In the latter, well irrigation is widely practised.


  16. There are claims from FOMCA that experts engaged by Sime Darby to manage the study and this project are undergraduate students.
    This is not true. We have a number of experts who are established professionals in their field as follows:
    Ir. Dr. Azuhan Mohamed
    Position: Head - Water Management
    Age: 50 years old
    Nationality: Malaysian
    • B.Sc (Hons) – major in Hydrology and Hydraulics Engineering, Univ. of Newcastle upon Tyne, UK
    • M.Sc. in Hydrogeology, Univ. of Birmingham, UK
    • Phd. in Civil Engineering – major in groundwater, Univ. of Birmingham, UK
    • Professional Engineer
    • Corporate Member Institution of Engineers Malaysia
    • Licentiate Institute of Geology Malaysia
    • Certified Groundwater Professional – Association of Groundwater Scientists and Engineers, USA
    • More than 27 years experience in the field of groundwater engineering
    Mr. Chong Foo Shin
    Position: Principal Hydrogeologist
    Age: 69 years old
    Nationality: Malaysian
    • B.Sc. (Hons) Geology, Univ. of New South Wales, Australia
    • Diploma in Hydrogeology, Univ. of London, UK
    • M.Sc. Hydrogeology, Univ. of London, UK
    • Fellow Institute of Geology Malaysia
    • More than 40 years experience in the field of hydrogeology
    Mr. Lindsay Furness
    Position: Principal Hydrogeologist
    Age: 55 years old
    Nationality: Australian
    • M.App.Sc. in Hydrogeology, Univ. of New South Wales, Australia
    • Registered Professional Geoscientists, Australia
    • Consultant to UN agencies and has worked in 16 countries on groundwater related projects
    • More than 32 years experience in the field of hydrogeology
    Prof. Dr. Manfred Krieter
    Position: Advisor
    Age: 61 years old
    Nationality: German
    • Professor of Hydrogeology, Hydrology, Hydrogeochemistry and Soil Sciences, Department of Geosciences, Univ. of Muenster, Germany
    • More than 35 years experience in the field of hydrogeology
  17. There were allegations by WECAM (Water and Energy Consumer Association of Malaysia) that Sime Darby has offered “financial and technical assistance” as well as a free trip to South Korea to silence opposition to the project.
    “The financial and technical assistance” was not meant to silence the opposition to the groundwater project but a sincere gesture on the part of Sime Darby to help FOMCA and other NGOs interested in the groundwater issue to find out more about this form of water supply which could prove beneficial to the Malaysian public in the long-term.

    Likewise, the invitation for a familiarization tour of the groundwater technology in South Korea from November 1-6, 2009 is to expose members of the NGOs, media and government about the technology that has been proven successful in extracting groundwater in other parts of Asia. Sime Darby plans to apply this technology to its own project in Batang Padang, Perak.


  18. WECAM also claimed that when an expert from United States warned us about the usage of groundwater that destroyed their ecosystem in a seminar recently in KL, Sime Darby has used its influence to silence the matter.
    Sime Darby finds the statement as a desperate attempt by WECAM and Mr. P. Subramaniam to discredit Sime Darby with glee. Furthermore, WECAM has not specified the identity of the expert and has not provide with evidence to back up this claim.

    Sime Darby, as one of government-owned companies, has never practiced such disdainful acts since its founding 99 years ago. We are proud of our successes all these years, all of which were based on our hard work, excellent business acumen and foresight.


  19. Sime Darby is a big conglomerate with diverse business activities. Isn’t this project just another way to exploit natural resources and make a quick profit?
    As a listed conglomerate with operations in over 20 countries, Sime Darby practices sustainable development in all of its business operations, be it in plantations, property, motors, industrial, energy & utilities or healthcare.

    Sime Darby ploughs back between RM50 million and RM100 million every year to take care of the environment (protection of endangered wildlife species, planting of 5 million forest trees, etc) as well as help the needy, the underprivileged, the poor and the destitute through financial and other means. We are proud of our good track record in this area and intend to do more in the future.

    Sime Darby wishes to reiterate that the groundwater project is not business driven but a sincere contribution by Sime Darby to the nation towards enhancing the reliability of public water supply services in the country since groundwater is less affected by dry weather compared to river water, besides conserving the environment that is, in relation to minimal impact on river flow, lesser production of sludge from the water treatment plant and, no loss of biodiversity and displacement of people consequent to dam construction.


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