GEORGE TOWN: PBA Holdings Bhd (PBAHB) shareholders have overwhelmingly approved the purchase of treated water from Perak, clearing a major hurdle for the long-awaited project.
Chief Minister Chow Kon Yeow, who chairs the water utility holding company, said 97.93 per cent of shareholders backed the board’s resolution at an extraordinary general meeting (EGM) today.
Under the agreement, PBA Holdings’ subsidiary, Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP), will purchase treated water under the Northern Perak Water Supply Scheme from Konsortium Prasarana Air dan Irigasi Perak Sdn Bhd, a subsidiary of Khazanah Air Perak Sdn Bhd under the Perak State Development Corporation (PKNP) and Gamuda Bhd.
Chow said the approval fulfilled a condition precedent requiring shareholder backing. The company would notify Bursa Malaysia and the Perak state company to initiate the next steps.
The infrastructure must be completed and ready to supply treated water to the Perak-Penang border by March 31, 2032, after which PBAPP will handle distribution within Penang.
Chow acknowledged concerns raised by five board members over potential financial burdens and risks. He said the agreement did not guarantee lower water tariffs in Penang, as capacity and supply charges had already been fixed.
The agreement is also subject to the Perak consortium obtaining approval from the National Water Services Commission (SPAN) for its proposed tariffs by 2035. If approval is not secured, PBAPP can withdraw from the agreement.
PBAPP chief executive officer Datuk K. Pathmanathan said the company faced no capital expenditure risk, as the Perak consortium would fund the 500 million litres per day treatment plant.
He said Penang had initially requested 750 million litres per day from the federal government before settling on 500 million litres per day, as local water resources under the Water Contingency Plan 2030 had been exhausted and industrial demand, particularly in Batu Kawan, continued to rise.