AGREEMENT BETWEEN
THE GOVERNMENT OF THE STATE OF JOHOR (Johor)
And
THE PUBLIC UTILITIES BOARD OF
THE REPUBLIC OF SINGAPORE (S'pore)

• This is supplement to 1962 Agreement and will expire in 2061;

• It is based on MOU between the two parties signed on 28th June, 1988 in which S'pore was allowed to proceed with the construction of Linggiu Dam and to purchase treated water from Johor in excess of 250 mgd. The MOU also reaffirmed the 1962 Agreement and the price of the treated water to be supplied by Johor to S'pore;

• Johor to own the S'pore constructed Linggui Dam while S'pore to own the treatment plants etc until expiry in year 2061 when they revert to Johor;

• Johor to set aside 21,600 hectares of State land as catchment area and S'pore to pay premium of RM18,000/ha and annual rent of RM30.00 per 1,000 sq ft;

• S'pore to pay Johor RM320 million as compensation for loss of use of land and one-time up-front payment for leasing land "inclusive of rentals for the remaining tenure of 1962 Agreement"; and

• Any dispute to be settled by arbitration in accordance with the Rules of the Regional Centre of Arbitration at Kuala Lumpur.

Note:
1. The 1990 Agreement is guaranteed by the Government of Malaysia and the Government of the Republic of Singapore in an separate Agreement signed on the same date as the 1990 Agreement.

2. No mention of the safe yield of Linggui Dam and the capacity of treatment plant.

3. No mention of quantity of treated water to be supplied to S'pore in excess of the latter's entitlement of 250 mgd.