GEORGE TOWN: Penang's conditional bulk water pact with Perak fairly distributes multi-billion-ringgit financial risks while securing crucial water reserves, state authorities said.
State Infrastructure Committee chairman Zairil Khir Johari said examining isolated clauses of the conditional Bulk Water Supply Agreement (BWSA) created a false impression of a one-sided deal.
The agreement between Penang Water Supply Corporation (PBAPP) and Prasarana Air dan Irigasi Perak Sdn Bhd (PAIP) aims to supply 300 to 500 million litres of treated water daily (MLD) for at least 40 years.
Zairil said the RM8.4 billion capacity charge over 40 years, averaging RM210 million annually, served as a deferred availability payment for a dedicated 500 MLD plant built entirely for Penang.
