Penang Water Supply Corporation (PWSC) has justified the state's recent water tariff increase by pointing to a RM2.1 billion funding requirement for critical infrastructure projects.
Pathmanathan stated that the capital is essential to complete upgrades by 2030 under the Water Contingency Plan, which includes constructing new treatment plants, modernizing existing facilities, and acquiring land for major pipeline expansions.
The utility argues that the tariff adjustment is necessary to secure financing for these long-term investments.
Without the additional revenue, PWSC faces challenges in addressing aging infrastructure and expanding capacity to meet future demand.
The projects are framed as vital for ensuring water security and service reliability in the state.
This move aligns with broader regional trends where water utilities are grappling with high non-revenue water (NRW) losses.