IPOH: The signing of a bulk water supply agreement between Khazanah Air Perak (KAP) and Penang has been postponed at the request of the Penang side, with the delay unrelated to politics, says Datuk Seri Saarani Mohamad.
The Perak Mentri Besar said the agreement is a business-to-business arrangement between KAP and the Penang Water Supply Corporation (PBAPP), and does not directly involve both state governments.
"KAP is a joint venture company between Gamuda and the Perak State Development Corporation (PKNP). They are the ones negotiating and signing the agreement with PBAPP.
"Based on the original schedule, I was informed that the signing was supposed to take place on July 10. However, I was later informed that the Penang side requested a slight postponement, probably because there are still some matters they want to fine tune," he told reporters after the Perak State Secretariat Office excellent service award presentation ceremony on Monday (July 13).
Saarani said he was not informed when the agreement would be signed, adding that the timing now depends on the Penang side.
"Once they are ready, they will sign it," he said.
He also dismissed speculation that the postponement was politically motivated.
"It has nothing to do with politics. This is about water," he said.
Asked whether the pricing had been agreed upon, Saarani said the details could not be disclosed until the agreement was finalised.
"We cannot announce the price until the agreement is concluded. This is a business-to-business arrangement," he said.
On June 17, media had quoted Penang Chief Minister Chow Kon Yeow as saying that the deal was supposed to be signed the following week.
He had said that negotiations had reached the final stage, with only technical and legal matters left to be resolved.
The Perak-Penang water project is a major strategic initiative aimed at facilitating the transfer of raw and treated water to meet growing demand in northern Peninsular Malaysia, particularly to support domestic and industrial needs in Penang.
