GEORGE TOWN (July 10, 2011): PBA Holdings Bhd, the Penang government's water management arm, is looking into developing a second major raw water source as the Sungai Muda, from which it now gets 80% of its raw supply, may fall to "dangerously low levels" in the future.
Calling Penang a "water-stressed state", PBA CEO Jaseni Maidinsa warned that the state's water demand will continue to grow in tandem with the growth in population and economic activities such as manufacturing, trade, tourism and commerce.
PBA's wholly-owned subsidiary, Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP), currently draws water from the Sungai Muda which flows from Kedah to Seberang Perai. Kedah also draws water from the river, upstream, Jaseni noted.
"The new major infrastructure projects and a second raw water source from a neighbouring state are likely to cost hundreds of millions of ringgit.
"Such investment represents high risk for PBAPP and will inevitably lead to water tariff revisions," he said at a recent company function.
"Besides increasing the pool of raw water available, a second resource will also ensure that Penang has a back-up option, as and when the stream flow at Sungai Muda falls to dangerously low levels," he said.
Jaseni pointed out that Penang now has 62.9 sq km gazetted as water catchment areas, making up only 6.1% of the state's total land.
PBA reported a better set of financial results for the first quarter ended March 31, 2011. Net profit more than doubled to RM11.04 million from RM5.37 million a year earlier while revenue rose 15.3% to RM56.31 million.
The higher revenue and earnings came mainly from the improved sale of water to trade venues.
Earnings per share also doubled to 3.33 sen.
PBA said it expected to achieve satisfactory results for FY11 although it remains mindful of measures needed to mitigate escalating costs and the prevailing economic conditions.
For FY10, PBA posted a net profit of RM26.23 million, up 77% from RM14.82 million in the previous year, on a 7.5% increase in revenue to RM198.54 million.
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