IPOH: Penang will begin receiving treated water from neighbouring Perak in six years, following the signing of a water supply agreement between the two state governments.
The deal aims to reduce Penang’s dependency on Sungai Muda and forms part of the state’s Water Contingency Plan 2030.
A Memorandum of Understanding (MoU) paving the way for the sale of Perak’s excess treated water to Penang was signed here yesterday.
The agreement follows a decade of discussions between the two states.
Perak Mentri Besar Datuk Seri Saarani Mohamad said the deal holds historical significance for the two states.
“We have successfully broken through a decade-long interstate water supply impasse,” he said.
He said it was only in the last three years that discussions have gained momentum and alignment, leading to mutual benefits to both states.
He said the construction of the pipeline to Penang is expected to be completed in 2030, which is crucial to addressing Penang’s projected deficit.
For Perak, this project provides critical long-term water security for the irrigation needs of Northern Perak and supplies for the upcoming Kerian Integrated Green Industrial Park.
The agreement was signed between Perbadanan Kemajuan Negeri Perak, Gamuda Berhad Joint Venture (PKNPk-Gamuda JV), and Penang Water Supply Corporation.
Saarani and Penang Chief Minister Chow Kon Yeow attended the signing ceremony.
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.
He said 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,” said Chow.
Saarani said the state government places its complete confidence in PKNPk-Gamuda JV.
He said their proven track record in operating water treatment plants and delivering complex infrastructure projects on time and within budget assures that this critical scheme will meet its 2030 completion target, benefiting both states.
The MoU outlines key terms on pricing, volume and supply tenure for the sale of water to Penang.
“A definitive Bulk Water Supply Agreement is expected within six months, pending authority approvals,” added the statement.
