Penang will not buy treated water from Perak, says Lim

GEORGE TOWN: Penang will not purchase treated water from Perak under the Sungai Perak Raw Water Transfer Scheme (SPRWTS) as it could increase the water tariff for domestic consumers in the state, said Chief Minister Lim Guan Eng.
He said Perak was charging 73 sen per 1,000 litres for her domestic users and the price could increase if they sold treated water to Penang.
“They will surely want to sell to us at more than 73 sen, if so than everyone here (Penang) will have to pay more.
“If we accept then water rates could be like that of Johor which is three times that of Penang,” he told a press conference after attending the Penang Water Supply Holdings Bhd (PBAHB) annual general meeting today.
Under the RM2 billion project, water from Sungai Perak will be pumped through a tunnel and discharged into Sungai Ijok, which then flows into Sungai Kerian where Penang will extract the water from its side of the river.
Perak Mentri Besar Datuk Seri Dr Zambry Abdul Kadir had reportedly said his administration has decided not to sell raw water but only treated water.
Lim said his administration will continue efforts to press for the SPRWTS to materialise, adding that negotiations between PBAHB, Perak and the federal government are ongoing.
“The last meeting was held between all three in March,” he added.
On the financial performance of PBAHB, the company reported revenue of RM261.02million in 2014 compared to RM251.73million in 2013, a 3.69% increase.
Profit after tax was RM24.76million in 2014 compared to RM27.93million in 2013 with Lim attributing the decline to increased costs.
He said these costs included variances in administrative expenses, interest income, share of profits and income tax expense.
Lim also expressed hopes for the future and pointed to several developments including investments in Penang totalling RM48.2 billion from 2008 to 2014 and RM11.3 billion joint ventures between Penang Development Corporation (PDC) and Temasek Holdings.