PKNPk - GAMUDA JV AND PBAPP AGREE ON KEY TERMS OF BULK TREATED WATER SUPPLY TERMS TO PENANG
06 Nov 2025
IPOH, 6th NOVEMBER 2025 – PKNPk and Gamuda Berhad JV (PKNPk-Gamuda JV) together with Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) have signed a landmark Memorandum of Understanding (MoU) for the sale of excess treated water from the Northern Perak Water Supply Scheme (NPWSS) to Penang.
The broader NPWSS is a strategic project to transfer 1,500 MLD of raw water from Sungai Perak to the Bukit Merah Dam, addressing demands for irrigation, domestic and industrial use, including the upcoming Kerian Integrated Green Industrial Park (KIGIP).
The MoU formalises the collaboration between the supplier, being a company to be incorporated by the PKNPk-Gamuda JV (Perak's state-approved operator) and the buyer, PBAPP (Penang's water operator). The signing ceremony, held in Casuarina@Meru Hotel, Perak, was attended by YAB Dato' Seri Saarani Mohamad, Menteri Besar of Perak and YAB Tuan Chow Kon Yeow, Chief Minister of Penang, alongside key officials from both State governments.
This pivotal agreement is the culmination of many months of intensive negotiations, which establishes terms for the sale of water to Penang – specifically the price, quantity and supply tenure – which will be the basis of the definitive Bulk Water Supply Agreement (BWSA) to be entered into between the supplier and PBAPP. The parties intend to execute the BWSA within six months, subject to the relevant authority's approvals.
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