PETALING JAYA: PBA Holdings Bhd’s unit has secured state approval to alienate a 4.11-acre plot in George Town, Penang for RM20mil, following a successful appeal to lower the land premium from RM55.38mil, to pave the way for the development of water infrastructure facilities in Penang.
In a filing with Bursa Malaysia, the water utility said in 2022, the company’s wholly-owned subsidiary, Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) made an application to the state authority for the alienation of the 4.11 acres of reclaimed land (plot B), for the construction of a pump house, submarine pipelines maintenance, and future water infrastructure projects.
The application was approved on Jan 13, 2025 for a 99-year lease with a land premium of RM55.38mil. Following this, PBAPP made an appeal to lower the land premium, on the basis that the land was reclaimed by PBAPP for RM8mil, and part of the reclaimed land (plot A), has been surrendered to the state government at no cost.
PBAPP also made known that the land is solely for non-commercial use, specifically for the development of water infrastructure facilities on Penang Island to support long-term water supply needs.
The land alienation now enables PBAPP to obtain possession of the land for the construction of a pump house, operations and maintenance of the pipe of the third twin submarine pipelines and future water infrastructure projects. The land premium will be satisfied by internally generated funds. The land alienation for plot B is expected to be completed by December 2025.