Plans to build a 37.5km long tunnel as part of a US$526M water transfer scheme in Malaysia are moving forward with the works ministry and the Japanese government in the final stages of negotiation.

Works minister Samy Vellu said discussions focus on several issues including a loan that will help finance the scheme. But he remained confident the details will be finalised soon.

This would enable construction to start ready for the system to come into operation by 2007. The tunnel will be built from Sungai Kelimong in Pahang to rivers in Selangor in the Klang Valley, close to the Malaysian capital, Kuala Lumpur. The tunnel will feed water into the Klang Gates dam, Hulu Langat dam and the Semenyih dam.

“The transfer project is very important. Without it, there will be water shortages,” Vellu said.