Gamuda JV Signs 40-Year Bulk Water Supply Agreement With PBAPP

KUALA LUMPUR, July 15 (Bernama) -- Construction company Gamuda Bhd’s joint venture has entered into a bulk water supply agreement with Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) to supply treated water to Penang from Perak under the Northern Perak Water Supply Scheme (NPWSS).

The agreement was signed by Prasarana Air dan Irigasi Perak Sdn Bhd (PAIP), a wholly owned subsidiary of Khazanah Air Perak Sdn Bhd (KAP), which was incorporated as a 50:50 joint venture company between Gamuda and Perbadanan Kemajuan Negeri Perak (PKNPK) to undertake the NPWSS.

It said the agreement establishes the long-term commercial framework for the 40-year treated water supply arrangement, governing the sale, supply and purchase of treated water located in Kerian, northern Perak , to the border of Penang.

“The target date for the commencement of supply of treated water is starting March 31, 2032 and ending in 2072. Recipient minimum offtake of 300 million litres per day (MLD) and up to 500 MLD being the maximum water treatment plant design capacity, with a rate of approximately RM1.1507 to RM1.9178 per cubic metre based on minimum offtake, equivalent to approximately RM210 million per annum,” it said in a stock exchange filing.

Gamuda said the agreement will provide the company with recurring earnings from the sale of treated water upon commencement of supply, while Penang will receive a new source of treated water over the 40-year supply period. “The NPWSS project is expected to contribute positively to the future earnings for Gamuda group of companies through the development and construction of the project infrastructure, followed by recurring income from the supply, operation and maintenance activities upon commencement of the water supply,” it added.

-- BERNAMA