THE READY FLOW OF TAP WATER DOES NOT MEAN IT SHOULD BE WASTED.
KUALA LUMPUR: The Penang state government has doubled the raw water intake fee charged to PBA Holdings Bhd
(PBAHB), from 3 sen per cu metre to 6 sen per cu metre, starting Jan 1.
In a filing with Bursa Malaysia, PBAHB said the 6 sen per cu metre fee was based on the actual production volume annually from year 2016 to 2018.
The revision of the fee is regarded as a recurrent related party transaction (RRPT) as the State Secretary, Penang (SSI) holds 55% of the company’s paid-up capital.
Based on the estimated production volume for the period from Jan 1, 2016 to Dec 31, 2018, PBAHB said, the annual water intake fee to be made payable by its unit Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) to the state government was about RM61.5mil for three years.
“The RRPT value arising from the proposed payment of the annual water intake fee for year 2016 is expected to exceed the prescribed threshold of 1% of the applicable percentage ratio as stated in the Listing Requirements but it will be less than 5% of the said applicable percentage ratio based on the financial results of the company for the year ended Dec 31, 2014,” the utility firm said.
The total raw water intake fee incurred by PBAPP for the financial year ended Dec 31, 2015, was RM8.409mil.
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