PKNPk-Gamuda JV, PBAPP Agree On Key Terms For Bulk Treated Water Supply To Penang

IPOH, Nov 6 (Bernama) -- Perbadanan Kemajuan Negeri Perak and Gamuda Berhad JV (PKNPk-Gamuda JV), together with Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP), today signed a landmark memorandum of understanding (MoU) for the sale of excess treated water from the Northern Perak Water Supply Scheme (NPWSS) to Penang.

The signing ceremony was attended by Perak Menteri Besar Datuk Seri Saarani Mohamad and Penang Chief Minister Chow Kon Yeow, alongside key officials from both state governments.

The MoU formalises the collaboration between the supplier, being a company to be incorporated by the PKNPk-Gamuda JV (Perak’s state-approved operator) and the buyer, PBAPP (Penang's water operator).

In a joint statement, the parties said the MoU followed months of intensive negotiations to determine the main terms for the sale of water to Penang, specifically the price, quantity and supply tenure, which will be the basis of the definitive Bulk Water Supply Agreement (BWSA) to be entered into between the supplier and PBAPP.

“The parties intend to execute the BWSA within six months, subject to relevant authorities’ approvals,” the statement read. 

The broader NPWSS is a strategic project to transfer 1,500 MLD of raw water from Sungai Perak to the Bukit Merah Dam, addressing demands for irrigation, domestic and industrial use, including the upcoming Kerian Integrated Green Industrial Park (KIGIP).

Meanwhile, Saarani was quoted in the statement as saying that the signing of the MoU marked a historic day for Perak and Penang as it had successfully broken through a decade-long interstate water supply impasse.

“It is only in the last three years that discussions have gained momentum and alignment, which brings mutual benefits to both states. Today, we witness the successful resolution of this journey via the signing of this MOU,” he said.

Saarani said the agreement also meets the water needs of both states and aligns with our Perak Sejahtera 2030 core principle: managing water, our most valuable ‘treasure’  for the economic benefit of Perak by creating a new, long-term revenue stream for the next 40 years.

Chow, on the other hand, said that the agreement essentially secures a reliable source for long-term treated water at an affordable rate, and Penang now has increased diversification of its water supply sources and a reduced reliance on Sungai Muda.

He said Penang has the Water Contingency Plan 2030, but NPWSS now provides the state with enhanced surety of the much-needed critical water supply coming online by 2031.

“We hope the project will be delivered on time and are confident it is in the capable hands of the experienced PKNPk-Gamuda JV, given the criticality of this timeline.

“This is crucial for Penang's ability to continue to attract high-value investments, which will support our local economy and industrial growth for decades to come,” he was quoted as saying.

-- BERNAMA