Perak: 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.
According to BERNAMA News Agency, 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. This initiative aims to address 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, 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 will form 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 highlighted the agreement as a historic breakthrough, resolving 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 and secure Northern Perak’s long-term water supply for irrigation and the upcoming KIGIP. Saarani emphasized that the agreement aligns with the state’s core principles of water management by creating a new, long-term revenue stream for the next 40 years and aligns with the new public investment strategy outlined in Budget 2026.
Chow expressed that the agreement secures a reliable source for long-term treated water at an affordable rate. He noted that Penang has increased diversification of water supply sources and reduced reliance on Sungai Muda. The NPWSS provides enhanced surety of critical water supply by 2031, aligning with Penang’s Water Contingency Plan 2030. Chow added that the project is in the capable hands of the experienced PKNPk-Gamuda JV and emphasized that tariffs will remain affordable, supporting Penang’s ability to attract high-value investments and industrial growth for decades to come.