The Malaysian Insight

PENANG has to increase its water tariff to fund water projects worth more than half a billion ringgit that will safeguard the state’s water supply security, said Chow Kon Yeow.

The chief minister, who also chairs the Penang Water Supply Corporation (PBAPP), said this today in announcing the corporation’s plan to invest RM501 million in water supply projects over the next three years.

The projects, to be undertaken by PBAPP from this year to 2021, are the Butterworth-Penang Island Twin Submarine Pipeline, Sg Perak Raw Water Transfer Scheme (SPRWTS), water treatment facility upgrades and non-revenue water (NWR) management.

Chow said without the water supply engineering projects, Penang risks facing water crises during prolonged dry seasons every year.

“Even by increasing the water tariff, the revenue may not even be enough to fund the projects. We will still need to find other sources of funding.

“But we hope the people can understand that the proposed water tariff increase is necessary,” he told a press conference at Komtar today.

Last week, the federal government announced that water tariffs may be increased nationwide to protect consumers’ interest in receiving quality water and ensuring the services of industries.

The Penang government responded that the state’s water tariff at 32 sen for the first 35,000 litres for domestic consumers – the cheapest in the country – will “definitely increase”.

Chow said the proposal to increase the water tariff must be approved by the cabinet and gazetted before the new tariffs could be announced.

He said the state government could propose and negotiate the tariff for the state.

Of the projects PBAPP was undertaking, the most crucial were the 12,000km twin submarine pipeline and SPRWTS, he said.

The undersea pipeline will ensure water security for Penang Island and fulfil the state’s no water rationing policy.

“Penang has not rationed water since 1999. Our policy is no water rationing, and I want to maintain this track record, which means we need improved infrastructure,” Chow said.

“No water rationing comes with cost to upgrade our system and improve delivery to meet our future water demand.”

Penang’s average water consumption is high, with last year’s average at 826 million litres per day (MLD). 

By 2050, the demand is projected to increase by 128% to 1,884 MLD, according to an independent master plan study for potable water in Penang towards 2050 commissioned in 2009.

To ensure water supply, Penang also has to reduce its reliance on Sg Muda, which flows from Kedah, for water. For years, the state has urged the federal government to allow Penang to draw water from Sg Perak.

The SPRWTS project, if kicked off, will give Penang a new and second raw water source, and ensure supply and water security towards 2050.

Chow said it was good that the Water, Land and Natural Resources Ministry had taken an interest in the SPRWTS project, directing Penang and Perak to look into it.

“The negotiations may take a year, but implementation will take many years. This project is for 2030 and beyond,” he said.

PBAPP chief executive officer Jaseni Maidinsa said they had met with the ministry on the urgency of the SPRWTS project and would continue to pursue the project. 

Talks on the project had been long delayed when Barisan Nasional was in power, he said. – January 14, 2019.