The Penang government is furious with the BN for revealing "'confidential and secret" information on a water agreement between the state and the federal government.

Chief Minister Lim Guan Eng said the Penang BN had chosen to "score cheap political points" by revealing details of the agreement at a press conference on Monday.

NONELim said such agreements are "secret in nature and highly confidential", and could only be disclosed by the federal or state governments.

"State BN working committee chief Dr Teng Hock Nan appears to have forgotten that he is no longer (in) the Penang government," he said in a statement.

"Has Teng forgotten he was rejected by his Pulau Tikus voters and lost in the last general election?

"He is not holding any federal position... what right and on whose behalf is he making such announcements that should only come from either the federal or state governments?"

The chief minister was referring to Teng's announcement on Monday on a RM1.2 billion dam expansion project in Mengkuang to increase the state's water capacity by 3.8 times.

Teng, a former state executive councillor revealed that the deal would be inked with the federal government tomorrow and that it was proof the federal government had not forsaken Penang even though BN is no longer in power in the state.

Deal concluded two months ago

Accusing the BN of "breaching confidentiality", Lim said negotiations on the terms of the agreement were concluded two months ago and were pending cabinet approval.

He confirmed that the signing ceremony had been fixed for tomorrow, in Putrajaya between himself and Energy, Green Technology and Water Minister Peter Chin Fah Kui.

He said Teng had no locus standi whatsoever to make any disclosure on the agreement and that it was "unbecoming and irresponsible" of Teng to do so.

NONELim also said the state was initially reluctant to accede to the migration of the state's water assets to the federal government under Pengurusan Aset Air Bhd.

However, as Penang Water Supply Board chairperson, he had no choice as the previous BN state government had surrendered the state's water assets to the federal government under the Water Services Industry Act 2006.

He said the Penang government had insisted that the interest-free loan of RM1.2 billion be converted into a grant as a condition of migration of water assets to be expedited.

"After the expansion of the Mengkuang dam is completed, it will still belong to the state government, and this has been agreed to by the federal government," Lim said.

He then went on to accuse Teng of not being truthful by asking the state to answer the details of the RM1.2 billion dam expansion project.

"I shall also be directing state government officials to inquire with the federal government whether the details of such agreements are revealed to rejected BN politicians who hold no official positions," Lim added.