Friday 29 Mar 2024
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KUALA LUMPUR (Dec 13): The Penang government has agreed to cut back water intake fee imposed on PBA Holdings Bhd to three sen per cubic metre for 2018.

In a filing with Bursa Malaysia, PBA said its wholly-owned subsidiary Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) received a letter from the state government, approving its application for the reduction.

The state government had previously increased the water intake fee to six sen per cubic metre, from three sen, based on PBAPP’s actual annual production volume from 2016 to 2018.

Based on estimated production volume from Jan 1, 2016 to Dec 31, 2018, the annual water intake fee for three years, before reduction, is approximately RM63.4 million, PBA said.

The group did not provide its new estimation on the water intake fee payable to the state government, after the reduction.

“On Nov 9, 2017, the State Government of Penang had announced that PBAPP will be giving water rebates for two months to reduce the burden caused by the major flood that occurred in Penang on Nov 4, 2017.

“As such, PBAPP had also submitted its application to the State Government of Penang, requesting for a reduction of the existing Water Intake Fee from the rate of six sen per cubic metre to three sen per cubic metre for year 2018, in order to minimise the group’s financial burden,” the filing added.

The Penang government has a 55% stake in PBA.

PBA’s share price gained two sen or 1.67% to RM1.22 today, giving it a market capitalisation of RM403.82 million.

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