Penang CM: Rising costs will not delay Penang’s strategic water projects

GEORGE TOWN, May 11 — The Penang government will continue with its water supply projects under the Water Contingency Plan 2030 amid rising operational and construction costs due to global economic uncertainties.

Penang chief minister Chow Kon Yeow said the projects implemented by the Perbadanan Bekalan Air Pulau Pinang (PBAPP) are crucial to ensuring the stability of the state’s water supply.

“All projects under the Water Contingency Plan 2030 will continue and we have already obtained sukuk financing to fund these projects,” he told the state legislative assembly today.

He said these projects cannot be delayed and some are currently at various stages of implementation, including construction, consultancy services and land acquisition.

He was responding to a question from Lee Boon Heng (PH-Kebun Bunga) regarding PBAPP’s operational costs following the global supply crisis.

Chow also said the Penang Development Corporation (PDC) is postponing several projects for at least six months.

He said PDC has also in principle agreed to share project cost increases with contractors through an operational cost-sharing mechanism.

“The state government is also affected by rising operating costs, including the increase in diesel prices which has placed pressure on local authorities,” he said.

He said it is estimated that the Seberang Perai City Council (MBSP) may have to bear an additional RM5 million in operational costs due to the hike in diesel price.

“The state government is unable to provide economic stimulus packages as we have also been affected by the current economic situation,” he said.

He added that the federal government has implemented various measures, including financial assistance to help small and medium enterprises (SMEs) facing operational costs challenges.