Perak water supply agreement taking shape: Quick Note

Research evidence excerpt

Perak water supply agreement taking shape: Quick Note

Global Markets Research

Gamuda GAMU.KL GAM MK 15 July 2026

EQUITY: ENGINEERING & CONSTRUCTION

RatingPerak water supply agreement taking shape Remains Buy

Target price MYR 5.10 RemainsQuick Note

Closing price MYR 4.16 15 July 2026

• Gamuda announced that a 50:50 JV between Gamuda and Perbadanan Kemajuan

Negeri Perak (PKNPk, unlisted) has executed a 40-year Bulk Water Supply

Agreement (BWSA) with Perbadanan Bekalan Air Pulau Pinang (PBAPP, unlisted) for

Research Analysts

the Northern Perak Water Supply Scheme (NPWSS). The agreement covers supply of

a minimum 300MLD (million litres per day) of treated water with potential to go up to Malaysia Engineering &

Construction 500MLD from a Kerian water treatment plant to Penang, with commercial operations

Tushar Mohata, CFA - NSM

targeted to commence from 31 March 2032.

tushar.mohata@nomura.com

• This agreement, originally signed in February 2025, aims to construct infrastructure +60(3)20276895

and supply of treated water from the water surplus state of Perak to industry-heavy Research Associates

Penang. Eventually, for Gamuda, two potential revenue/earnings streams should

Malaysia Engineering & materialise, in our view: 1) the EPCC works for the water treatment / distribution

Construction

infrastructure, and 2) the recurring earnings from water capacity and water charges.

Alpa Aggarwal, CFA - NSFSPL

Today’s (15 July 2026) agreement finalises the tariff structure for the second half of

the project.

• We believe the 40-year supply period (2032-72) provides long-term revenue visibility

and recurring earnings potential for Gamuda. As per the announcement, the total

capacity charge for supply to Penang (based on a minimum offtake of 300MLD at