Gamuda JV signs 40-year treated water supply deal to Penang
Gamuda Bhd’s water joint venture will supply treated water to Penang under a 40-year agreement valued at RM210 million a year in capacity charges.
Source: Gamuda · July 25, 2026 at 10:54 PM · AI-assisted report
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KUALA LUMPUR, 26 JULY 2026 —
Gamuda Bhd’s water joint venture will supply treated water to Penang under a 40-year agreement valued at RM210 million a year in capacity charges.
Khazanah Air Perak Sdn Bhd’s unit Prasarana Air dan Irigasi Perak Sdn Bhd (PAIP Perak) signed the bulk-water supply contract with Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) for the Northern Perak Water Supply Scheme (NPWSS), Gamuda said on Wednesday.
PAIP Perak will supply 300 million litres per day initially, starting in the first quarter of 2032, with volumes capped until the Perak government approves increases. PBAPP will pay RM210 million a year for dedicated treatment and distribution capacity, rising from a base tariff of RM1.70 per cubic metre with a structured escalation clause.
The agreement safeguards Perak’s raw-water surplus and future needs, including demand from the Kerian Integrated Green Industrial Park, PAIP Perak director Datuk Redza Rafiq Abdul Razak said in a statement.
“Perak’s long-term interests remain fully safeguarded,” he said. “The water needs of our residents, industries and agricultural sectors will continue to take precedence at all times.”
KAP is a 50:50 venture between Gamuda and Perbadanan Kemajuan Negeri Perak; PBAPP is a subsidiary of PBA Holdings Bhd. The deal is subject to definitive documents with the Perak government, registration with the National Water Services Commission and PBA Holdings shareholder approval.
Gamuda shares rose one sen to RM4.16, a 0.24% gain. PBA Holdings added one sen to RM1.99, up 0.51%.
Related: Gamuda · Kuala Lumpur
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