Penang: The Penang government has announced its commitment to continue with strategic water supply initiatives under the Water Contingency Plan 2030, despite facing increased operating and construction costs due to global economic uncertainties.

According to BERNAMA News Agency, Chief Minister Chow Kon Yeow emphasized the importance of these projects, which are managed by the Penang Water Supply Corporation (PBAPP), in maintaining long-term water supply stability in the state. Chow stated that delaying these projects is not an option, given their critical role in ensuring water security for the region.

Currently, the projects are at various stages, including construction, consultancy services, and land acquisition. Chow assured that all initiatives under the Water Contingency Plan 2030 will proceed as planned, with financing secured through sukuk loans. This statement was made in response to a supplementary question from Lee Boon Heng (PH-Kebun Bunga) regarding PBAPP's operational costs amid the global supply crisis.

In contrast, the Penang Development Corporation (PDC) has decided to defer several projects for a minimum of six months. This decision was made to provide contractors with an opportunity to navigate the uncertainties surrounding rising costs. Additionally, PDC has agreed in principle to share the increased project costs with contractors via an operating cost-sharing mechanism.

Chow also noted the broader impact of rising operational expenses on the state government, including higher diesel prices. These factors have added financial pressure to local authorities. Initial estimates suggest that the Seberang Perai City Council (MBSP) will face an additional RM5 million in operating costs due to these increases.