GEORGE TOWN, Nov 14 — Penang’s water tariffs will be higher after the implementation of the Perak-Penang water transfer scheme.

But Penang Chief Minister Chow Kon Yeow said the price will be decided by the National Water Services Commission (SPAN).

He said the agreement with Perak means that Penang will now have an alternative water resource instead of relying fully on Sungai Muda in Kedah.

"This Perak-Penang water transfer scheme is one of my top priorities as water security involved lives and all economic activities so with this agreement, we can finally work out the details,” he told reporters after attending a Small and Medium Enterprises Association Malaysia luncheon event at Jen Hotel here.

He said Penang has to finally accept taking treated water from Perak instead of raw water as the other state was firm on only providing treated water to Penang in previous discussions on the project over the years.

Penang started pursuing the water transfer scheme with Perak from 2009 but bilateral talks stalled a few times.

Last week, Perak Menteri Besar Datuk Seri Saarani Mohamad said both state secretaries have reached a unanimous agreement for Perak to sell treated water to Penang.

Chow said earlier studies Penang conducted was to buy raw water from Perak so the project costs included construction of a water treatment plant.

"Now all activities will be in Perak till the water is channelled to Penang and we will take over in terms of channelling the water to consumers in Penang,” he said.

He said this meant Penang no longer needs to foot the costs of building a new water treatment plant but instead will pay a tariff for treated water from Perak.

He said the recent discussion between both states is only the first step as more details need to be discussed.

The Perak-Penang water project is expected to take between six to 10 years to be completed, Chow said.

"It can be implemented in phases especially when northern Perak needs water supply for agriculture and more so, the recent announcement that northern Perak was selected as a new industrial hub,” he said.