by TMR

PBA Holdings Bhd announced the Penang state government retained the water intake fee at three sen per cubic meter for its water supply to the state.

The water supply company is currently supplying water to Penang via its wholly-owned subsidiary Perbadanan Bekalan Air Pulau Pinang Sdn Bhd that was charged a reduced water intake rate of three sen per cubic meter, down from six sen previously, under the previous 2018 agreement.

In an exchange filing on Friday, PBA noted its application to retain the fee at the current level was approved by the Penang state government based on the wholly-owned unit’s actual annual production volume for 2019.

The proposed reduction will only have a material effect on the group’s net assets and earnings for the financial year ending Dec 31, 2019, as the reduced intake fee is only applicable on that year.

Meanwhile, the Penang state government reserves the right to review the water intake fee in 2020 to determine the fee structure for the next three years thereafter, the filing noted.