THE majority of PBA Holdings Bhd’s shareholders have approved Penang Water Supply Corporation’s (PBAPP) proposal to purchase a minimum of 300 million litres per day (MLD) of treated water from Perak starting in 2032.
Chief Minister and PBAPP board chairman, Chow Kon Yeow, said that 97.93 per cent of its shareholders voted through themselves or proxies to back the contractual agreement signed between both neighbours earlier this year.
Chow said that the rights of Penang or the PBAPP is fully protected under the deal and there is no reason why the state must pay compensation if the deal turns sour.
The board of directors, of which five had abstained from supporting the project, is also behind the deal although they have no voting rights in this corporate exercise, Chow told a press conference.
Present were PBAPP chief executive officer Datuk K. Pathmanathan and PBA Holdings group chief financial officer Dr Mary Anne Harris.
Chow said there are two main exit clauses to the deal on the Perak end.
First, the deal, which sees Perak supplying 300 to 500 million litres per day (MLD) of treated water to their neighbour.
It's for a duration of 40 years, starting from 2032 until 2072, with the total cost amounting to RM24.6 billion.
The costs would be borne under a new tariff structure, subject to approval from the National Water Services Commission (SPAN).
The other regulatory approval is that PBA Holdings, being the listed entity, needs support from its shareholders, which was obtained today, said Chow, who added that the next element is SPAN approval for the tariff structure.
"If there is no SPAN approval pending, then the deal is off, and we are not committed to pay anything," said Pathmanathan.
Pathmanathan said that this is the best deal possible, as sourcing more water from Kedah is problematic due to alleged pollution in the Ulu Muda water catchment area from logging activities.
Desalination is also more expensive at this juncture compared to the deal inked with Perak, said Pathmanathan.
"The ball is now in the Perak court to proceed," he said.
He said that Perak would be footing the infrastructure to supply treated water from northern Perak with constructing a new water treatment plant.
Raw water would be extracted from Sungai Perak. - November 12, 2026.
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