GEORGE TOWN, Nov 12 — Penang’s water supply company could remain liable for RM210 million in annual capacity charges even if Perak fails to deliver the minimum volume of treated water under a proposed 40-year supply agreement, DAP’s Air Putih assemblyman Lim Guan Eng said today.
In a statement, he said the arrangement was among the reasons five independent directors of PBA Holdings Berhad opposed the proposal, which he estimated would involve RM24.6 billion in water purchases over the contract period.
Under the agreement, Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) would be required to pay RM8.4 billion in capacity charges over 40 years, Lim said, despite any failure by Perak to provide the minimum 300 million litres of treated water a day.
