SINGAPORE (IPS) - Singapore Prime Minister Lee Hsien Loong believes that the island country's water dependency on mainland Malaysia has been a blessing in disguise that has helped turn ''vulnerability into strength''.

   Water, observed Lee recently, ''is for us, not an inexhaustible gift of nature, but a precious fruit of our efforts which we must husband and use wisely''.

   Lee's observations -- having universal application in an increasingly water-short world -- were made at the opening in mid- September of a desalination plant worth 119 million U.S. dollars and capable of producing 114 million litres of potable water a day at 46  U.S. cents a litre to Singapore's four million citizens.

   Guests at the opening ceremony sipped from bottles of ''Desal  H2O'', produced by the plant, contemplated goldfish swimming in a glass tank filled with the same water and listened to Lee explain how  the water industry was now a ''dynamic and vibrant part of the  Singapore economy''.

   Over the last four years, the government has outsourced 2.7 billion dollars worth of water infrastructure projects, and will invest another 900 million dollars during the next two years to improve its water services.

   ''The experience gained from these projects will give our companies a competitive edge in global the market,'' noted Lee.

   The desalination plant at Tuas was designed and built by a local  water treatment company, Hyflux,  and features  'reverse osmosis'  technology in which dissolved salts in sea water are extracted by forcing the water through membranes with microscopic pores.

   This tiny island nation of 700 square kilometress imports nearly  half of its daily consumption of 1.14 billion litres of water a day from reservoirs and rivers in Malaysia's Johor state, under  agreements signed in 1961 and 1962 when Singapore was still a part of the Malay Federation.

   Under the agreements, Singapore is allowed to draw 1,277 million litres daily from rivers in Johor for a price of less than 1 cent per 1,000 gallons (3,800 litres) until 2011.

   Two other agreements signed during this period allow Singapore to  use up to 461 acres of land in Johor as catchment areas for 99  years. All this water is pumped into Singapore through three huge pipelines across the two-km causeway that separates the two countries.

   After Singapore was kicked out of the Malay Federation and became an independent nation in August 1965, the island republic felt vulnerable enough to register the agreements at the United Nations Charter Secretariat Office in June 1966.

   Recent years have seen acrimonious debates between the neighbours on the re-negotiation of these agreements. While Malaysians demand increased prices for their water, Singaporeans want guaranteed access  to the water for an indefinite period.

   At the height of these arguments, two years ago, a Malaysian  newspaper reported that a Singaporean leader had told a British Foreign Office official, that ''if Malaysia attempts to amend the terms of the agreement, Singapore will see it as an act of war''.

   Singapore, however, has invested heavily in making the country as self-sufficient, as possible. Lacking land area for more reservoirs, it has separate drainage and sewerage systems that safely drain water into existing local reservoirs in catchment areas that already cover half  the island.

   Two years ago, Singapore announced a breakthrough when the  country's water authority, Public Utilities Board, was able to collect all used-water (in a country which is 100 percent sewered) to  produce NEWater -- a popular brand of bottled drinking water.

   There are now three plants producing 76 million litres of NEWater  a day and, recently, the country recently rolled out is five  millionth bottle, testimony to the cleanliness with which the country's drains are maintained since they flow back into the  reservoirs--the main source of drinking water.

   Environment and Water Resources Minister Yaacob Ibrahim said, despite being recycled, NEWater has gained the wide support and acceptance of Singaporeans.

   ''One of the ways in which this has been done is by consistently  distributing bottled water to the public for sampling, especially at  major public events, such as the National Day Parade,'' he said in an address to the International Desalination Association's world  congress in September.

   At the congress, Singapore showcased its expertise in water  management and purification technologies to some 600 delegates from different parts of the world, including from China where Hyflux has already built five water-recycling plants.

   Valuable praise came from Abdullah Al Hussayen, minister for  water and Electricity in the desert country of Saudi Arabia, who said  Singapore's achievements lay in combining frontline technology with demand management.

   Yaacob told the congress that the secret behind Singapore's  successful water policy includes ''keeping unaccounted-for-water low, pricing water to reflect its scarcity value and encouraging everyone,  be it households, communities or the industries, to use and manage  water wisely''.

(END/IPSAP/05)