Federal gov’t hands over RM3.47 bln rural water projects to Sarawak to speed up delivery

Ahmad Zahid (left) chairing the coordination meeting on the handover of rural water supply projects to the Sarawak government at the Federal Secretary Office on April 14, 2026. Photo credit: JaPEN Sarawak

By Karen Bong

KUCHING, April 14: A total of 80 Rural Water Supply (BALB) projects worth RM3.47 billion, previously under federal implementation, will now be executed by the Sarawak government toto accelerate delivery and improve implementation efficiency.

Speaking at a press conference after chairing a coordination meeting on the handover of rural water supply projects to the Sarawak government at the Federal Secretary Office today, Deputy Prime Minister and Minister of Rural and Regional Development Datuk Seri Dr Ahmad Zahid Hamidi said the decision reflects the federal government’s commitment to strengthening implementation through closer collaboration with the State.

The move follows a Cabinet decision on March 17, 2026, for Rural Water Supply (BALB) projects in Sarawak to be implemented by the State government, allowing for faster on-the-ground execution and better coordination.

“This is a game-changing move that translates the commitment of both the federal and Sarawak governments into a joint implementation mechanism aimed at accelerating rural water supply delivery.

“The handover involves projects at various stages of implementation, including 50 in the pre-implementation stage, nine already implemented, 20 in the post-implementation stage, and one project that has been cancelled,” he disclosed in a pre-recorded interview.

He said consultations were held with the Ministry of Finance and the Ministry of Economy to resolve regulatory issues that may have previously hindered implementation.

“We are open-minded and receptive to the proposals put forward by the Sarawak Ministry of Utility and Communication to identify more efficient approaches without disregarding existing regulations and legal requirements, for the benefit of the people and rural water users in Sarawak,” he said.

Ahmad Zahid noted that Sarawak has its own development plan through to 2030 to achieve full water supply coverage, with programmes already being implemented at the State level.

Ahmad Zahid added that the handover is intended to strengthen the role of the Sarawak government in executing development projects on the ground, particularly through its implementing agency Sarawak Rural Water Supply Department (JBALB), which has recorded implementation progress of about 93 per cent.

“That is why, if there are implementation constraints, I do not want the responsibility to merely shift from one party to another while the process remains unchanged. We must find solutions without compromising regulations,” he emphasised.

Despite challenges such as cost escalation and regulatory constraints given uncertainty in the global economy outlook, he said implemetation guidelines and adjustments will be reviewed by the National Economic Action Council (M10) before being presented to the Cabinet for further decisions.

“Any changes, including additional allocations, downsizing or project restructuring, will be made in accordance with government procedures and focused on ensuring timely delivery of clean water supply to rural communities,” he added.

Minister of Utility and Telecommunication Dato Sri Julaihi Narawi and Deputy Minister of Rural and Regional Development Datuk Rubiah Wang were present. — DayakDaily