Business · Malaysia Bureau
Penang DAP chief questions RM8.4b water deal with Perak state
Lim Guan Eng has raised concerns over a major water supply agreement between Penang and Perak, questioning whether the state water company should bear financial obligations regardless of service delivery performance.
LSN Malaysia ·
GEORGE TOWN, Nov 12 — Penang's opposition DAP leader Lim Guan Eng has voiced concerns over the RM8.4 billion water supply agreement between Penang and Perak, questioning the terms under which Penang Air and Water Board (PBAPP) must maintain annual capacity payments.
Lim questioned whether PBAPP should be obligated to pay approximately RM210 million annually for water capacity, even in circumstances where the supply fails to meet contractual requirements. The arrangement, which secures long-term water resources for Penang from Perak, has drawn scrutiny over its financial implications for the state utility company.
The DAP politician's concerns highlight ongoing debates in Penang regarding major infrastructure contracts and their financial sustainability. Water supply agreements between states have become increasingly complex as demand rises across the northern region.
PBAAPP's liability structure under the agreement remains a contentious issue, with questions raised about risk allocation between the utility and its suppliers. Officials have not immediately responded to the criticism regarding the payment obligations clause.