GEORGE TOWN: The war of words between Penang and Kedah over the safety of the northern region's water resources appears to have been resolved.
"We welcome the reply given in Parliament yesterday by Minister of Environment and Water, Datuk Seri Tuan Ibrahim Tuan Man, that the Kedah Menteri Besar has given his word that no exploration will take place in the Ulu Muda water catchment areas," Penang Chief Minister Chow Kon Yeow said in a statement.
"The Penang government, therefore, will hold him to his word in guaranteeing the safety of raw water supply to meet the needs of 4.2 million consumers in Perlis, Kedah and Penang," he added.
Chow also said the state government welcomes any and all efforts by the minister to engage with stakeholders to protect water catchment areas and resources.
"Since Penang extracts its raw water supply from the Penang side of the Ulu Muda River, we call on the Federal authorities to resolve any issues relating to demand for payment for water extraction, based on international rights on water," Chow added.
He was referring to Kedah Mentri Besar Muhammad Sanusi Md Nor who said Kedah had written several times to Penang demanding a RM50 million annual payment for raw water which the Penang Water Supply Corporation (PWSC) extracted from the Muda River.
Muhammad Sanusi had reportedly said that Kedah first sent the claim in 2010 followed by another this year but Penang has refused to pay.
Meanwhile, the PWSC said that it reserves the right to speak up for Penang if the Kedah state government makes decisions that threaten Penang's water supply and security in any way.
"As a holistic water supply organisation, we consider water catchment areas, such as Ulu Muda, to be the first links in the water supply value chain," PWSC and PBA Holdings chief executive officer Datuk Jaseni Maidinsa said in a separate statement.
"Without sufficient raw water, we cannot produce sufficient treated water to meet Penang's daily needs.
"It is our core business, and public responsibility, to meet all of Penang's water supply needs, around the clock."
The exchange of words between the two states came about following an Astro Awani report on Dec 2, quoting Muhammad Sanusi as saying that his state government had approved a permit for a company to explore the mining of rare earth elements (REE) in Kedah.
He said that large REE deposits, valued to be worth RM60 billion, had been detected in Sik, Baling and Ulu Muda.
PWSC responded by alleging that large-scale REE mining in Ulu Muda would endanger water supply for 4.2 million people in Perlis, Kedah and Penang because the Kedah Menteri Besar had conveniently forgotten that Ulu Muda is the largest and most important water catchment area in the northern states.