Summary
- PBAPP signs conditional 40-year agreement for 300 million litres daily.
- Perak supplier to bear RM8.4 billion infrastructure costs.
- Agreement includes termination clauses and regulatory safeguards.
GEORGE TOWN, October 31 — Penang’s 40-year water supply agreement with Perak remains conditional on regulatory and shareholder approvals, the State Legislative Assembly was told.
State Infrastructure Committee chairman Zairil Khir Johari said PBAPP would purchase at least 300 million litres of treated water daily from 2032 to 2072.
Perak supplier PAIP will bear RM8.4 billion in infrastructure development, operation and maintenance costs. The agreement includes termination provisions covering supplier defaults.
Insolvency, prolonged supply disruptions and failed tariff negotiations, although certain exits may carry financial obligations.
