GEORGE TOWN: Although the Penang Water Supply Corporation (PBAPP) is profitable, its earnings are insufficient to fund all future water infrastructure projects planned for the state, says Zairil Khir Johari (pic).
The state infrastructure, transport and digital committee chairman said water tariffs needed to be adjusted to increase PBAPP's revenue and enable the implementation of critical projects, while ensuring consumers' interests remained protected.
"We need to adjust water tariffs to strengthen PBAPP's financial position so that these key projects can be carried out. At the same time, we will continue to safeguard the people's interests," he told reporters in a press conference on Friday (June 5).
Zairil said, at a press conference Thursday (June 4), that the total investment required for future water supply projects would amount to several billion ringgit.
"Just think about how much PBAPP earns. It is simply not enough," he said.
He said PBAPP would need to build several new water treatment plants, with each facility costing hundreds of millions of ringgit.
According to Zairil, the projects’ costs would ultimately have to be borne by PBAPP.
"We also need to replace ageing pipes, upgrade existing water supply facilities and undertake various infrastructure projects. All these require substantial funding," he said.
He warned that failure to carry out the projects could result in a recurrence of water supply issues experienced in the past.
Zairil said inadequate upgrading and expansion works over the years had caused water infrastructure development to lag behind growing demand.
"One of the main reasons was that water tariffs remained too low for a long time. Because the rates were low, PBAPP did not have sufficient funds to invest in new infrastructure," he said.
