GEORGE TOWN, Oct. 30 -- Penang state exco Zairil Khir Johari told the state legislative assembly that there were risks identified in the Perak-Penang water project such as insufficient tariff adjustments, rising costs and supply disruptions but buying treated water from Perak was still more economical and practical than large-scale seawater desalination.

The state infrastructure and transport committee chairman said there were risks such as delayed or insufficient water tariff adjustments and rising electricity and chemical costs identified in a due diligence review of the project.

In comparison to seawater desalination, he said desalination process requires not only substantial capital expenditure but also operating expenditure.

"The ...