PBA said its subsidiary, Perbadanan Bekalan Air Pulau Pinang Sdn Bhd, received a letter from the Penang government informing that the water intake fee will remain at the rate of three sen per cubic metre next year. — Bernama
PETALING JAYA: PBA Holdings Bhd
, the water supply operator for Penang, announces that the water intake fee for 2023 will not be revised.
PBA said its subsidiary, Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP), received a letter from the Penang state government informing that the water intake fee will remain at the rate of three sen per cubic metre next year.
The rate was based on the annual actual production volume for 2023.
PBA is 65%-owned by the Penang state government.
“The said recurrent related-party transaction entered into by PBAPP with the Penang state government is revenue or trading in nature, which is necessary for day-to-day operations and in the ordinary course of business on terms which are not more favourable to the related party than those generally available to the public and are not detrimental to the minority shareholders of PBA,” it said in a filing with Bursa Malaysia yesterday.
PBA added that the Penang state government will review the water intake fee by end-2023 to determine the fee for 2024.
The water intake fee is imposed by the Penang state government pursuant to the power rendered to the state as provided in Article 110 of the Federal Constitution.
“The water intake fee is not expected to have any material effect on the net assets and the earnings of the company for the year 2023,” according to PBA.
