WATER is an essential asset for health, society, and the economy, but it was not included in both the Federal Government’s RM77.3 billion subsidies on consumer necessities and the Federal’s RM332.1 billion Budget 2022 (which has an allocation for the Covid-19 Fund), says Penang Water Supply Corporation (PBAPP) chief executive officer Datuk Jaseni Maidinsa.
Jaseni said PBAPP agreed with the Federal Government’s decision to maintain the electricity and water tariffs in the peninsula.
“We agree that it may not be a good time to raise the tariff during this Covid-19 period. However, when the subsidy is given, why was water excluded?
“The RM77.3 billion subsidy expenditure could include consumer necessities such as cooking oil, petrol, electricity, and others, but not water?
“Even the RM332.1 billion Budget 2022 allocation which has an allocation for the Covid-19 Fund, did not include a subsidy for water operators in the country,” he said, adding that water should be included in both ‘subsidy baskets’.
Jaseni said the Federal Government wanted the water operators, such as PBAPP, to meet its key performance index (KPI).
“We must ensure that the water supply quality complies with the Ministry of Health (MoH).
“We submitted our business plan to meet your KPI. We need that amount of money to finance the water projects to meet the KPI, and that amount can only be derived from the tariff review.
“We need the tariff review not to increase PBAPP’s profit, but to finance those projects.
“Since the Federal Government has decided to maintain the electricity and water tariffs in the peninsula, it should also give us the subsidy just as it has allocated for Tenaga Nasional Berhad (TNB).
“The subsidy should be based on the differential amount between if we obtain the tariff review and the current tariff,” he said in an interview recently.
Jaseni said the services of water operators could drop because they might not have sufficient funds to finance water supply projects.
“For example, PBAPP requires over RM775.3 million to finance water projects that are in its three-year business plan. Where can it get the funds to do that?
“This is our situation, we are struggling. Without sufficient funds, we cannot finance new projects.
“We can just spend money on OpEx (operating expenditure) because we need the money to repair pipes, replace the meters and mechanical equipment too.
“Let me be honest, there is even a water operator that does not even have the money to change the meters.
“I have highlighted the matter to the state government, and argued with the water regulator and the ministry,” he said.
Jaseni stressed the importance of water supply.
“Without water, you cannot drive the economy. How are the hotels and factories going to operate without water? One of the main reasons why Penang was able to recover quickly after we have entered the Covid-19 endemic phase was because we have a good water supply.
“Secondly, how can we fight Covid-19 without water? People are told to constantly wash their hands to prevent Covid-19 infection.
“Water is a very important asset and yet, it is not given the proper respect, dignity, and value.
“We urge the MPs to raise this matter in Parliament. This affects all water operators in the country. This is a national issue,” he added.
Story by Christopher Tan
Pix by Adleena Rahayu Ahmad Radzi