Perak and Penang break 10-year water supply deadlock with MoU for treated water from Northern Perak Water Supply Scheme to Penang.
IPOH: Perbadanan Kemajuan Negeri Perak and Gamuda Berhad JV together with Perbadanan Bekalan Air Pulau Pinang today signed a landmark memorandum of understanding for bulk treated water supply to Penang.
The MoU formalises collaboration between PKNPk-Gamuda JV as Perak’s state-approved operator and PBAPP as Penang’s water operator.
The agreement follows months of intensive negotiations to determine key terms including price, quantity and supply tenure.
These terms will form the basis of the definitive Bulk Water Supply Agreement to be executed within six months, subject to relevant authorities’ approvals.
Perak Menteri Besar Datuk Seri Saarani Mohamad called the signing a historic day that broke through a decade-long interstate water supply impasse.
“Today, we witness the successful resolution of this journey via the signing of this MoU,” he said in a statement.
Saarani noted the agreement aligns with Perak Sejahtera 2030’s core principle of managing water for economic benefit.
The deal creates a new, long-term revenue stream for Perak for the next 40 years.
Penang Chief Minister Chow Kon Yeow said the agreement secures reliable long-term treated water at an affordable rate.
Penang now has increased diversification of water supply sources and reduced reliance on Sungai Muda.
Chow expressed confidence in PKNPk-Gamuda JV’s ability to deliver the project by the critical 2031 timeline.
“This is crucial for Penang’s ability to continue to attract high-value investments,” he stated.
The broader Northern Perak Water Supply Scheme will transfer 1,500 million litres daily of raw water from Sungai Perak to Bukit Merah Dam.
The project addresses demands for irrigation, domestic and industrial use including the upcoming Kerian Integrated Green Industrial Park. – Bernama
