Gamuda, PKNPk signs MOU with Penang water operator on sales of treated water


CGSI Research expects Gamuda’s big contract wins to include the Bandar Springhill data centre campus.

KUALA LUMPUR: Gamuda Bhd in collaboration with Perbadanan Kemajuan Negeri Perak (PKNPk) has inked a memorandum of understanding (MOU) with Perbadanan Bekalan Air Pulau Pinang (PBAPP) to explore a potential long-term business collaboration relating to the supply of excess treated water, it said in a filing with Bursa Malaysia today.

Gamuda said the parties will attempt to enter into a formal agreement within six months from the date of the MOU.

On July 16, 2025, Gamuda had announced to the stock exchange its joint venture with PKNPk has been appointed by the Perak state government to undertake the development and operation of the water treatment and distribution infrastructure in Kerian, Northern Perak.

Under the terms of the appointment, the treated water would be supplied to Kerian Green Industrial Park (KIGIP), and the excess treated water sold to Penang. 

The water infrastructure in Kerian forms part of the broader Northern Perak Water Supply Scheme (NWSS), which has an estimated total development value of RM5bil.

It is a strategic initiative by the Perak state and federal governments to address long-standing water shortages for irrigation, domestic and industrial use in the region.

"The NPWSS scheme is designed to transfer 1,500 million litres per day (MLD) of raw water from Sungai Perak to the Bukit Merah Dam. 

"Of this total, 500MLD of raw water will be for the immediate irrigation needs of Northern Perak with the balance made available for treatment to meet the domestic and industrial demands of the State," Gamuda had said in a the July 16 statement.

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Gamuda , PKNPk , water , infrastructure , utility

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