Penang To Continue Water Supply Projects Despite Rising Costs - Chow

GEORGE TOWN, May 11 (Bernama) -- The Penang government will continue implementing strategic water supply projects under the Water Contingency Plan 2030 despite rising operating and construction costs caused by global economic uncertainties.

Chief Minister Chow Kon Yeow said the projects undertaken by the Penang Water Supply Corporation (PBAPP) are critical to ensuring the long-term stability of the state’s water supply and therefore cannot be delayed.

“At present, the projects are at various stages of implementation, including construction, consultancy services and land acquisition.

"All projects under the Water Contingency Plan 2030 will continue, and we have already obtained sukuk loans to finance the projects," he told the State Assembly sitting today.

He was responding to a supplementary question from Lee Boon Heng (PH-Kebun Bunga) on the operating costs of PBAPP following the global supply crisis.

Meanwhile, Chow said the Penang Development Corporation (PDC) had decided to defer several projects for at least six months to allow contractors time to gain better certainty over rising costs.

He added that PDC had also agreed in principle to share increased project costs with contractors through an operating cost-sharing mechanism.

Chow acknowledged that the state government was also affected by rising operational expenses, including higher diesel prices, which have increased financial pressure on local authorities.

According to initial estimates, the Seberang Perai City Council (MBSP) is expected to incur an additional RM5 million in operating costs due to the increase.

-- BERNAMA