PBA Holdings Bhd’s profit after tax (PAT) fell last year compared to 2016 due to Penang Water Supply Corporation’s (PBAPP) discount to the flood victims of the November 2017 storm disaster.

PAT last year was RM37.3 million, due primarily to water sales, compared with 2016’s RM61.8 million, PBA chief executive officer Jaseni Maidinsa said,

The big drop, he said, was due to PBAPP giving 604,547 consumers a discount on their water bills in support of the “Penang Bangkit” flood relief efforts.

“This corporate social responsibility gesture cost PBAPP about RM16.6 million in revenue.

“PBA incurred income tax expense of RM3.7 million last year, compared with RM7.1 million in income tax refunds in 2016 over an extension in investment allowances,” he told a press conference after PBA’s annual general meeting today.

Jaseni said on the plus side, PBA cut its sales and administrative costs by RM1.9 million last year.

Meanwhile, he said PBAPP would embark on three key water supply initiatives to ensure sustainable water supply management in Penang, a small state with a high water consumption.

The three initiatives are a RM125 million investment in the third Butterworth-Penang twin submarine pipeline, which is scheduled for completion in December 2020; taking back the expanded 73.5 billion litre Mengkuang Dam; and seeking federal approval to review the water conservation surcharge (WCS).

The key conditions for the handover of the dam include an RM100 million allocation from the Energy, Green Technology and Water Ministry’s (Kettha) for a new barrage across Sungai Muda in Rantau Panjang, and a commitment from Kettha to build a RM80 million Lahar Yooi pumping station under its Rolling Plan 4 and a RM100 million raw water pipeline from the Mal Sulong pump house in central Seberang Prai to the Sungai Dua canal by March 2020.

On the WCS review, Jaseni said PBAPP still needed to get the nod from the National Water Services Commission (Span).

In April last year, PBAPP applied to Span to raise the WCS from 48 sen per 1,000 litres to RM1 per 1,000 litres for domestic water consumptiont exceedint 35,000 litres a month.

Jaseni said 77% of domestic water users in Penang used less than 35,000 litres a month.

“The objective of the higher surcharge is to convince the 23% to use water wisely at home.

“PBAPP’s target is to reduce Penang’s per capita domestic water consumption from 276 litres per capita per day as soon as possible,” he said.

The national average last year is 209 litres per capita per day.

The PBAPP AGM today was the first attended by new PBA and PBAPP non-independent and non-executive chairman, Chief Minister Chow Kon Yeow taking over from Lim Guan Eng, who is now finance minister.

With the appointment of new ministers to head Kettha and the Natural Resources Ministry, Chow said, PBAPP hoped for a new era in regional raw water resources management in the northern states for long-term water supply security until 2050.

He said PBAPP and the state government would again bring up proposals related to the preservation of the Ulu Muda forest reserve, Sungai Muda and the Sungai Perak Raw Water Transfer Scheme (SPRWTS).

Ulu Muda is a crucial water catchment area for Sungai Muda, the main river that supplies water for Perlis, Kedah, and Penang. Logging activities in Ulu Muda had caused serious concern in recent years.

The SPRWTS will allow Sungai Perak to be optimised as a raw water source, benefitting northern Perak and Penang.

“PBAPP hopes to be able to present its proposals to the new National Water Resources Council chaired by Deputy Prime Minister Dr Wan Azizah Wan Ismail,” Chow said.

He said with a new and people-friendlier government in Putrajaya and in the states of Kedah and Perak, PBAPP hoped all parties would be more receptive and responsive to regional raw water management proposals. – June 28, 2018.