IPOH: Perak and Penang have taken a major step towards resolving their long-standing water supply issue with the signing of a landmark Memorandum of Understanding (MoU) for the sale of excess treated water.
Perak Mentri Besar Datuk Seri Saarani Mohamad said it was a historic day for both Perak and Penang, as they successfully broke through a decade-long interstate water supply impasse.
He said it is only in the last three years that discussions have gained momentum and alignment, which brings mutual benefits to both states.
“Construction completion is expected in 2030, which is important to address Penang’s projected deficit.
"This critically secures long-term water for the irrigation needs of northern Perak and supply for the upcoming Kerian Integrated Green Industrial Park (KIGIP),” he said in a statement on Thursday (Nov 6).
The agreement was signed between Perbadanan Kemajuan Negeri Perak and Gamuda Berhad Joint Venture (PKNPk-Gamuda JV) and Penang Water Supply Corporation (PBAPP).
The signing ceremony was witnessed by Saarani and Penang Chief Minister Chow Kon Yeow.
The MoU is said to pave the way for the Northern Perak Water Supply Scheme, a major project to transfer 1,500 million litres per day of raw water from Sungai Perak to the Bukit Merah Dam.
Chow said the deal is a “vital breakthrough” for Penang’s long-term water security, adding that Penang is committed to ensuring a reliable and affordable water supply.
“This MoU diversifies our water sources, reduces dependence on Sungai Muda, and complements our Water Contingency Plan 2030.
“The project will also help Penang continue attracting high-value investments, supporting the state’s economy and industrial growth for years to come,” Chow said.
Saarani added that the state government places its full confidence in PKNPk-Gamuda JV, given their proven track record in both operating water treatment plants and delivering complex infrastructure on time and on budget.
The MoU outlines key terms on pricing, volume, and supply tenure for the sale of water to Penang.
The statement also added that a definitive Bulk Water Supply Agreement is expected within six months, pending authority approvals.
