SPAN said while private sector involvement in water projects is encouraged under the government’s Water Transformation Plan 2040, all parties must follow the law.

“As the body regulating the water services industry, SPAN is responsible for ensuring the planning, development and distribution of water are done in accordance with the provisions of the Water Services Industry Act 2006 and its subsidiary legislation.

“Compliance with the law and its subsidiary legislation is crucial to safeguard the interests of all parties, including consumers,” it said in a statement today.

SPAN also told those promoting the project to seek approval before making media statements “to avoid any confusion”.

The Edge reported Gamuda Bhd executive director Azmi Nor as saying the NPWSS, to be developed and operated by the joint venture between Perak State Development Corporation and Gamuda (PKNPk-Gamuda JV), aims to address the long-standing water shortage for irrigation, domestic and industrial use in northern Perak.

Perak and Penang signed a non-binding memorandum of understanding on Nov 6 for the possible sale of surplus treated water from the scheme.

The Penang assembly also heard last month that under the draft terms, Penang would pay a yearly capacity charge of RM210 million, plus a treated water rate of RM1.70 per cubic metre.

The scheme includes a guaranteed supply of 300 million litres a day over 40 years, with a rate review at the halfway point.

FMT has reached out to PKNPk and Gamuda for comment.