RM5 billion loan repurposing deal signed for northern Perak water scheme
The Ministry of Finance says the arrangement will reduce losses linked to two pipeline projects and fund water infrastructure serving Perak and Penang.
Suria Strategic Energy Resources Sdn Bhd and the Export-Import Bank of China signed an agreement on Oct 30 to redirect RM5 billion in loan funding towards the Northern Perak Water Supply Scheme (NPWSS), according to the Ministry of Finance (MOF). Suria Strategic Energy Resources is a Minister of Finance Inc (MOF Inc) company.
The ministry said the arrangement concluded negotiations and enabled a partial loan recovery. Repurposing the funds would reduce losses associated with the Trans-Sabah Gas Pipeline and Multi-Product Pipeline projects while financing infrastructure for Perak and Penang, it said.
The NPWSS covers a raw-water transfer linking Sungai Perak with Bukit Merah Dam, improvements along Sungai Kurau and Terusan Besar, and the construction of treatment plants at Kamunting and Bogak. Local contractors will undertake construction, the ministry said.
For northern Perak, including the Kerian industrial area, the scheme targets 700 million litres per day in water supply. Penang's target is 300 million litres per day, while agricultural irrigation is to receive raw water at 500 million litres per day. MOF said the project was expected to improve long-term water security and meet growing domestic, agricultural and industrial demand.
The signatories were Mohd Fariszan Ahmad, a board member of Suria Strategic Energy Resources, and Kang Wang, vice-president of the Export-Import Bank of China.
