Penang shareholders back Perak water deal, clearing key hurdle for 2032 supply

George Town, Nov 12 - In a vote reflecting strong shareholder support, PBA Holdings Bhd's board has received approval to purchase at least 300 million litres per day of treated water from Perak, beginning in 2032. The endorsement came at an extraordinary general meeting where 97.93 percent of shareholders voted in favor of the proposal.

PBA Holdings and PBAPP Chairman Chow Kon Yeow emphasized that the vote fulfilled a critical condition in the Bulk Water Supply Agreement between PBAPP and PAIP. With this approval, PBA will notify Bursa Malaysia and PAIP to initiate the project. The water supply deal stipulates that the treated water must be delivered to Penang by March 31, 2032.

Chow, also serving as Penang's chief minister, acknowledged that a minority shareholder group had submitted concerns prior to the meeting, which were adequately addressed during the proceedings. The pricing of water tariffs was already stipulated in the BWSA, with PAIP needing to secure approval from SPAN for the proposed tariff and associated charges by 2035.

Failure to meet this condition could result in the project's failure, prompting PBA to reconsider its involvement.