Perak-Penang Water Transfer Deal Nears Completion, Signing Expected Next Week
GEORGE TOWN: The long-awaited Perak-Penang water transfer project is edging closer to reality, with both state governments expected to sign a formal agreement as early as next week.
Penang Chief Minister Chow Kon Yeow said negotiations have entered the final stage and both parties are working towards concluding the agreement in Ipoh before the end of next week.
According to him, although several technical matters are still being refined, discussions have progressed positively and are nearing completion.
“The agreement is now at the final stage of negotiations and, in principle, we are targeting next week for the signing ceremony.
“The ceremony is expected to take place in Ipoh, although it remains subject to the completion of several outstanding discussions,” he told reporters after the 26th Annual General Meeting of PBA Holdings Bhd here today.
The Perak-Penang water transfer project is regarded as one of the most significant strategic infrastructure initiatives in northern Peninsular Malaysia.
It aims to ensure a sustainable supply of raw and treated water to meet growing domestic and industrial demand, particularly in Penang, which continues to expand as a manufacturing and investment hub.
Chow said several preconditions must still be fulfilled before the agreement can be fully implemented.
He explained that experts and officials from both states are continuing to fine-tune technical aspects of the deal to ensure all parties are satisfied with the final terms.
“When drafting an agreement, there are many technical details that require careful examination and consensus.
“All matters, including pricing, have been discussed, but some refinements are still needed before the agreement can be finalised,” he said.
However, he did not disclose further details regarding pricing arrangements or the volume of water involved in the project.
In a separate development, Chow said the state government will announce its decision on the proposed rehabilitation of the Jelutong landfill and reclamation project along Karpal Singh Drive after receiving feedback from the concessionaire.
He said the company is required to respond to recommendations and conditions imposed by the Department of Environment (DOE).
At the same time, feedback from residents who have objected to the project is also being considered as part of the ongoing discussions.
“Once the concessionaire submits its response, the state government will announce its decision.
“We are also taking public views into consideration as part of the evaluation process,” he said.
Earlier this year, the Environmental Impact Assessment (EIA) application for the project was rejected by the DOE for the fifth time.
However, the concessionaire, PLB Engineering Bhd, is understood to have submitted a fresh application after revising the proposal to comply with the department’s requirements.
In 2020, the Penang Development Corporation signed an agreement with PLB Engineering to rehabilitate and redevelop the Jelutong landfill at an estimated cost of RM1 billion.
The project also includes the reclamation of approximately 30 hectares of land off Karpal Singh Drive.
