Gamuda JV bags Perak water supply deal of at least 40 years

Kuala Lumpur (July 16): The Perak state government has appointed a joint venture (JV) between Gamuda Bhd (KL:GAMUDA ) and Perbadanan Kemajuan Negeri Perak (PKNPk) to develop and operate water treatment and distribution infrastructure in Kerian, Northern Perak — a key component of the RM5 billion Northern Perak Water Supply Scheme (NPWSS).

This follows the signing of an exclusive agreement between the parties on February 5 this year. The JV will undertake the project on a privatisation basis with a minimum 40-year operation period.

Under the terms of the appointment, formalised on Wednesday (July 16), the JV will also supply treated water to the Kerian Integrated Green Industrial Park (KIGIP), and sell excess treated water to Penang.

NPWSS 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 northern region of the state.

It includes the transfer of 1,500 million litres per day (MLD) of raw water from Sungai Perak to the Bukit Merah Dam. Of this, 500MLD will be allocated for immediate irrigation needs in northern Perak, with the remainder to be treated and distributed to meet the domestic and industrial demands of the state.

A privatisation agreement is expected to be finalised within 90 days from the date of the appointment to meet the scheme’s completion target of 2030. The project is subject to the approval of relevant regulatory authorities.

Gamuda Engineering executive director Faris Mohd Yusof said the approval represents a major step towards ensuring long-term water security in Northern Perak.

“We are pleased to have been entrusted with the opportunity to jointly develop a key component of the NPWSS scheme for our home state of Perak. We are committed to ensure the critical delivery of water for the state with a focus on local workforce and community development,” he said in a statement on Wednesday.

Back in February, PKNPk chief executive Datuk Redza Rafiq Abdul Razak said the project would address Perak’s “most pressing issue” of water shortages and ensure supply security by 2029.

“With a steadily growing population and expanding economy, this water project is crucial for meeting the escalating domestic and industrial demand for clean water,” Redza said at the time.

At Wednesday’s market close, shares of Gamuda ended seven sen or 1.41% higher at RM5.03, valuing the largest Bursa Malaysia-listed construction firm at RM29.04 billion.