Pengurusan Aset Air Berhad (PAAB) has been told to urgently  implement the Penang-Perak water transfer scheme to provide for future demand and reduce the state’s dependency on Kedah.

Chief Minister Lim Guan Eng said that presently, 80 percent of Penang’s water resourced is derived from only one source, Sungai Muda in neighbouring Kedah.

"This can only meet Penang’s water demand up to the year 2020. There is uncertainty due to recent logging activities within the Kedah water catchment area," said Lim in a press conference today.

Lim said this project is expected to provide a holistic solution to the future water demand requirements for potable water and irrigation needs of PAAB, Perbadanan Bekalan Air Pulau Pinang, Lembaga Air Perak and the Drainage and Irrigation Department until the year 2050.

He was responding to PAAB chairperson Tajol Rosli Ghazali, who had given an assurance that states that had already signed the water restructuring deal would be given funds to finance their water-related projects.

He added that Penang signed the agreement on June 2, 2011, with the federal government to facilitate the state’s migration to the National Water Services Industry Restructuring Initiative (NWSIRI).

Seven-year project

PAAB is the nation’s water assets owner and manager under NWSIRI.
Part of the understanding in the ‘migration’ of the water assets to the federal government is the responsibility to fund all water projects in the state, estimated at more than RM 3.2 billion.

Lim said the Sungai Perak water transfer ccheme proposal was approved by the Energy, Green Technology and Water Ministry on June 30 last year.

This has been further endorsed by the National Water Services Commission (SPAN) and is currently  awaiting implementation approval from the Economic Planning Unit in the Prime Minister’s Department, added Lim.

"The project involves raw water and treated water infrastructures, which will be financed via a grant from the federal government, whilst treated water infrastructure shall be financed by PAAB funds," said Lim.

"The total estimated costs involved is RM2 billion and will take seven years to complete," added the DAP secretary-general.