KUALA LUMPUR (Feb 5): Gamuda Bhd (KL:GAMUDA) has signed an exclusive agreement with the Perak government to develop infrastructure aimed at addressing water shortages in the northern region of the state.

In a statement on Wednesday, the construction company said it has signed the agreement with Perbadanan Kemajuan Negeri Perak (PKNPk) to facilitate raw water transfer from Sungai Perak to Bukit Merah and develop the requisite infrastructure for treated water distribution, ensuring long-term water.

The parties will proceed with an official joint venture at a later stage, the statement read.

Under the agreement, both parties will jointly manage all components of the water infrastructure, including overseeing the design, civil and structural engineering, utilities, risk mitigation and the implementation of local workforce and technology training programmes.

“We bring extensive experience in water-related infrastructure to this arrangement, having successfully delivered similar projects such as the Skim Bekalan Air Fasa 3 Sungai Selangor and the Stormwater Management and Road Tunnel (SMART), among others,” Gamuda Engineering executive director Faris Mohd Yusof said.

Gamuda said it will also prioritise the local workforce and communities in the state through the development.

PKNPk chief executive Datuk Redza Rafiq Abdul Razak said the project will address Perak's “most pressing issue” by resolving the state’s critical water challenges and ensuring water security for its residents by 2029.

“With a steadily growing population and expanding economy, this water project is crucial for meeting the escalating domestic and industrial demand for clean water,” Redza said.

“Upon completion, it will also bolster the development of the Kerian Integrated Green Industrial Park (KIGIP) and enhance agricultural irrigation in the district,” he said.

This project also aligns with the 12th Flagship of the Perak Sejahtera 2030 programme, specifically under Flagship 12: Water Resources and Renewable Energy.

At the closing bell, shares of Gamuda ended 20 sen or 4.78% higher at RM4.38, valuing the largest construction firm at RM25.19 billion.

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