THE Penang Water Supply Corporation (PBAPP) signed a conditional Bulk Water Supply Agreement (BWSA) with Prasarana Air dan Irigasi Perak Sdn. Bhd. (PAIP Perak) to guarantee the state's water supply for a period of 40 years starting in 2032.
Penang Chief Minister and PBAPP chairman Chow Kon Yeow said the agreement was the most significant in the state's water supply history since the implementation of the Sungai Muda Water Scheme in 1973.
According to him, Penang needs a second source of water supply following the increase in demand which is expected to reach 1,162 million litres per day (MLD) by 2032 compared to the current consumption of 865 MLD last year.
“Penang no longer has a major domestic raw water source that can meet its needs in the 2030s.
“Through this project, Perak is prepared to supply between 300 and 500 JLH of treated water to Penang to ensure sufficient water supply for the people and support the state’s economic growth and development,” he said.
Chow added that the implementation of the agreement was however subject to the approval of the National Water Services Commission (SPAN) and PBAHB shareholders.
He said PBAPP would not bear the cost of developing the project’s infrastructure in Perak, which is estimated at RM8.4 billion, as it would be fully funded by PAIP Perak.
“PBAPP would also not bear the cost of land acquisition, raw water charges or operating expenses to operate the water supply infrastructure in Perak.
“The project does not replace Sungai Muda as Penang’s main source of raw water, but rather functions as a secondary source to improve water supply security and reduce the risk of disruption due to climate change and the El Niño phenomenon.
“PBAPP is also looking into the use of seawater desalination technology as a complement to the project to strengthen the state’s long-term water supply security,” he said. – July 16, 2026
