Penang to roll out RM1.8 billion water supply projects

Source: PBA

The Penang Water Supply Corporation (PBAPP) has announced six major water supply projects valued at over RM1.8 billion to meet the rising water demand in the state. Four of these projects, costing a total of RM824 million, are set to begin this year under the state’s Water Contingency Plan 2030 (WCP 2030).

The planned initiatives include two new water treatment plants with a combined capacity of 228 million litres per day (MLD). The Mengkeng Dam plant will cost RM250 million, while the Sungai Kerian plant is valued at RM402 million. Additionally, PBAPP will install a 13km pipeline from the Sungai Dua plant to Butterworth at a cost of RM128 million and a 3.9km pipeline connecting Macallum to the Bukit Dumbar Reservoir and Pumping Station Complex on Penang Island for RM44 million.

PBAPP, a subsidiary of PBA Holdings Bhd, has secured a commitment from Pengurusan Aset Air Bhd (PAAB), a Ministry of Finance-owned entity, to fund two additional water treatment plants. The Sungai Perai plant will have a capacity of 136 MLD and cost RM588 million, while the Sungai Muda plant, with a 114 MLD capacity, is estimated at RM435 million. PBAPP will repay PAAB through long-term financing arrangements.

PBAPP CEO Datuk K. Pathmanathan emphasized the importance of these projects, stating that PBAPP and the state government are also advocating for federal funding. Between RM500 million and RM700 million is projected for six federal water projects, including the Lahar Yooi Pump House and a dual-purpose pipeline linking Mengkuang Dam and the Sungai Dua Canal.

Furthermore, Penang plans to apply for federal support for two off-river storage schemes under the 13th Malaysia Plan, ensuring sustainable water management for the state’s growing needs.