A joint venture between Gamuda Berhad (Gamuda) and Perbadanan Kemajuan Negeri Perak (PKNPk) has accepted a letter of appointment from the Perak State Government to develop and operate water treatment and distribution infrastructure in Kerian, Northern Perak.
This aforementioned infrastructure forms part of the broader Northern Perak Water Supply Scheme (NPWSS), which has an estimated total development value of RM5 billion, a strategic initiative by the Perak State and Federal Governments to address long-standing water shortages for irrigation, domestic and industrial use in the region.
Under the terms of the appointment, formalised on 16July 2025, the PKNPk-Gamuda joint venture (JV) will undertake the following on a privatisation basis with a minimum 40-year operation period:
- The development and operation of water treatment and distribution infrastructure in the
Kerian district in Northern Perak; and - The supply of treated water to the Kerian Integrated Green Industrial Park (KIGIP) and the
sale of excess treated water to Penang.
The NPWSS scheme is designed to transfer 1,500 million litres per day (MLD) of raw water from Sungai Perak to the Bukit Merah Dam. Of this total, 500MLD of raw water will be for the immediate irrigation needs of Northern Perak, with the balance made available for treatment 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 JV’s appointment, to ensure the objective of completing the scheme by 2030 can be achieved. The development is subject to approvals from the relevant regulatory authorities.
Quote by Faris Mohd Yusof, Executive Director, Gamuda Engineering
This approval marks a progressive step towards the realisation of Northern Perak’s long-term water security strategy by 2030.
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.
This approval affirms our proven expertise in water-related infrastructure, having successfully delivered projects such as the Skim Bekalan Air Fasa 3 Sungai Selangor and the SMART Tunnel. Our experience in water treatment plants, distribution networks, and tunnelling positions us well to deliver this piece of essential infrastructure for the region.
