Politics · Malaysia Bureau
Penang defends RM8.4 billion water supply deal with Perak
Penang's state government has justified the substantial capacity charge for a water supply agreement with Perak, arguing the cost reflects a dedicated treatment facility operating over four decades.
LSN Malaysia ·
GEORGE TOWN, Nov 12 — State authorities in Penang have moved to defend the RM8.4 billion capacity charge agreed under a conditional water supply arrangement with neighbouring Perak, contending the figure represents fair compensation for a purpose-built treatment plant that will serve the state for 40 years.
The executive council member overseeing the deal explained that the substantial financial commitment reflects the long-term nature of the infrastructure investment required to meet Penang's water security needs. The dedicated facility would be constructed specifically to handle the state's water requirements throughout the four-decade contractual period.
The RM8.4 billion charge has drawn scrutiny from stakeholders examining the cost-effectiveness of the arrangement as Penang seeks to supplement its water resources and ensure adequate supply for its growing population and economic activities.
Official statements emphasized that the agreement represents a strategic investment in state infrastructure rather than an operational expense, with the facility's dedicated nature justifying the capital outlay spread across the extended contract duration.