KUALA LUMPUR (Oct 30): Suria Strategic Energy Resources Sdn Bhd, a Minister of Finance Inc (MOF Inc) company, and the Export-Import Bank of China on Friday signed a loan repurposing agreement valued at RM5 billion to finance the Northern Perak Water Supply Scheme (NPWSS).

The MOF said the signing of the agreement marked a significant achievement for the government in concluding negotiations and achieving a partial recovery of the loan by repurposing RM5 billion to implement the NPWSS. 

The MOF said in a statement on Friday that the move reduces the losses arising from the Trans-Sabah Gas Pipeline and Multi-Product Pipeline projects and ensures that RM5 billion can be utilised to develop essential infrastructure that benefits the rakyat, particularly in Perak and Penang.

The agreement was signed by Suria Strategic Energy Resources board member Mohd Fariszan Ahmad and Export-Import Bank of China vice-president Kang Wang. 

The NPWSS is an integrated water supply infrastructure project that involves transferring raw water from Sungai Perak to Bukit Merah Dam, carrying out upgrading works along Sungai Kurau and Terusan Besar and constructing water treatment plants in Kamunting and Bogak.

The MOF said the project targets a water supply capacity of 700 million litres per day for northern Perak, including the Kerian industrial area, 300 million litres per day for Penang, and 500 million litres per day of raw water for agricultural irrigation, with construction work to be undertaken by local contractors.

"The implementation of the NPWSS is expected to strengthen long-term water security, meet the increasing demand for domestic, agricultural, and industrial uses, and support socio-economic development," the ministry said. 

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