Chow Kon Yeow: Penang-Perak water deal talks enter final stretch, signing targeted for next week

GEORGE TOWN, June 16 — The long-awaited Perak-Penang water transfer project is now in its final stages of negotiations, with a formal agreement expected to be signed as early as next week, Penang Chief Minister Chow Kon Yeow said today.

He said both state governments have tentatively agreed to conclude and sign the deal by the end of next week in Ipoh, Perak.

“The agreement is currently at the final stage of negotiations and we have tentatively set next week for both parties to sign it,” he said at a press conference held after the 26th Annual General Meeting of PBA Holdings Bhd here.

“The ceremony is expected to take place in Ipoh, Perak, but it remains subject to the finalisation of ongoing discussions,” he added.

The Perak-Penang water project is a major strategic initiative aimed at facilitating the transfer of raw and treated water to meet growing demand in northern Peninsular Malaysia, particularly to support domestic and industrial needs in Penang.

Chow said the agreement includes several preconditions that must be fulfilled before it can be fully implemented.

He added that technical aspects of the deal were still being refined by experts and officials from both sides to ensure mutual agreement on all terms.

“When reviewing an agreement, there are many technical elements and issues that must be refined by experts before both parties can agree,” he said.

“All matters, including pricing, have been discussed, but further refinement is still required before the agreement is signed,” he added.

Meanwhile, Chow said the state government would announce its decision after receiving feedback from the concessionaire of the proposed Jelutong landfill rehabilitation and reclamation project along Karpal Singh Drive.

He said the concessionaire will need to present its feedback on recommendations made by the Department of Environment (DOE).

Chow added that views from residents who had objected to the project were also being taken into account in ongoing discussions between the state government and the company involved.

“When they (the concessionaire) respond, we will announce the decision. We are also taking into account public feedback, and this is part of the ongoing discussions,” he said.

The project’s Environmental Impact Assessment (EIA) application was rejected by the Department of Environment (DOE) for the fifth time in March this year.

It is understood that the concessionaire, PLB Engineering, has resubmitted another application after updating the application in accordance with the conditions set by the DOE.

Penang Development Corporation signed a deal with PLB Engineering Bhd to rehabilitate and develop the Jelutong landfill at a cost of RM1 billion back in 2020.

The project included the reclamation of 30ha of land off Karpal Singh Drive.

Protect Karpal Singh Drive Action Committee members have repeatedly called for the project to be cancelled due to environmental concerns, especially its proximity to the Middle Bank marine sanctuary.

The Middle Bank marine sanctuary spreads around 10 square kilometres in the waters of the South Channel between Penang Island and the mainland.

It is home to the only seagrass bed in the Straits of Malacca and a study has revealed that a total of 429 species of plants and animals were found there.