PKNPk-Gamuda JV Inks MoU With PBAPP For Bulk Treated Water Supply To Penang

By Zufazlin Baharuddin

IPOH, Nov 6 (Bernama) -- Perbadanan Kemajuan Negeri Perak and Gamuda Bhd, through their joint venture (PKNPk-Gamuda JV), have inked a memorandum of understanding (MoU) with Perbadanan Bekalan Air Pulau Pinang (PBAPP) for the sale of excess treated water from the Northern Perak Water Supply Scheme (NPWSS) to Penang.

Supply is expected to be ready by 2031, a joint statement said.

The broader NPWSS is a strategic project to transfer 1,500 million litres per day of raw water from Sungai Perak to the Bukit Merah Dam, addressing the demand for irrigation, domestic and industrial usage, including that of the upcoming Kerian Integrated Green Industrial Park (KIGIP).

The MoU formalises the collaboration between the supplier, in this case the PKNPk-Gamuda JV, Perak’s state-approved operator and buyer PBAPP, Penang’s water operator.

It also establishes the terms of sale to Penang, specifically the price, quantity and supply tenure, which, in turn, will be the basis of the definitive Bulk Water Supply Agreement (BWSA) between the parties.

The parties intend to execute the BWSA within six months, subject to relevant authority approvals.

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

Saarani said: “This is a historic day for Perak and Penang. We have broken a decade-long interstate water supply impasse.”

The agreement will address Penang’s projected deficit as per the Kementerian Alam Sekitar dan Air (KASA) report in 2022, Saarani said.

It will also secure Northern Perak’s long-term water supply for irrigation and the upcoming KIGIP.

“This agreement meets the water needs of both states,” he said, and aligns with the state’s core principles of water management by creating a new, long-term revenue stream for the next 40 years.

The project also aligns with the new public investment strategy outlined in Budget 2026.

“Through this alignment on the key commercial terms, we have a commercially viable project that can be flexibly funded via federal financing or a public-private partnership (PPP) arrangement,” Saarani said.

Chow said this agreement secures a reliable source for long-term treated water at an affordable rate.

“Penang has now increased diversification of our water supply sources and reduced reliance on Sungai Muda.

“Penang has the Water Contingency Plan 2030, but NPWSS now provides enhanced surety of the much-needed critical water supply by 2031.

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

“Moreover, tariffs will remain affordable, especially when compared with other industrial states.

“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 added.

-- BERNAMA