KUALA LUMPUR: Gamuda Bhd
, through its joint venture and subsidiary, has signed an agreement with the Perak state government to develop, operate and maintain the Northern Perak Water Supply Scheme (NPWSS).
In a filing with Bursa Malaysia, Gamuda said the agreement was signed between the state government, Khazanah Air Perak Sdn Bhd (KAP) and Prasarana Air dan Irigasi Perak Sdn Bhd (PAIPP) on Tuesday.
KAP is a 50:50 joint venture between Gamuda and Perbadanan Kemajuan Negeri Perak, while PAIPP is a wholly owned subsidiary of KAP.
The NPWSS is designed to transfer up to 1,500 million litres per day (MLD) of raw water from Sungai Perak to Bukit Merah Dam to address water supply needs for irrigation, domestic and industrial use in northern Perak.
Of the total, 500 MLD will be allocated for immediate irrigation needs, while the remaining 1,000 MLD will cater to domestic and industrial demand, including Phase 2 of the Kerian Integrated Green Industrial Park (KIGIP), with surplus treated water to be supplied to Penang.
Under the agreement, PAIPP will develop and operate the water treatment plants, while KAP will undertake the infrastructure works required to transfer raw water from Sungai Perak to Bukit Merah Dam.
The first phase involves the development of a water treatment plant with a capacity of 500 MLD near the Perak-Penang border, with an initial 300 MLD of treated water designated for Penang.
A second plant with an additional capacity of 150 MLD is planned near KIGIP, subject to securing an off-taker, funding and regulatory approvals.
Gamuda said the first-phase treatment plant has a development period of six years from the date PAIPP obtains lawful access to the site, followed by a 40-year operation and maintenance period.
PAIPP had earlier signed a 40-year bulk water supply agreement with Perbadanan Bekalan Air Pulau Pinang Sdn Bhd on July 15, 2026.
The company said implementation of the raw water transfer infrastructure remains conditional upon funding and contractual arrangements between the state and federal governments.
Gamuda expects the project to contribute positively to its revenue and earnings starting from the financial year ending July 31, 2027.
