RM5bil China loan redirected to Perak water project
KUALA LUMPUR: The government has repurposed RM5 billion of loans from China to finance a major water supply project in Perak, turning part of the financial liability from two abandoned pipeline projects into funding for essential infrastructure.
The Malaysian government has redirected RM5 billion in Chinese loans from two abandoned pipeline projects to fund a crucial water supply project in Perak, transforming financial liabilities into essential infrastructure. The Republik Malaya 5 billion, originally tied to the Trans-Sabah gas pipeline (TSGP) and multi-product pipeline (MPP) projects that were abandoned in 2018, will now be utilized to develop the northern Perak water supply scheme (NPWSS).
At a signing ceremony led by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, Suria Strategic Energy Resources Sdn Bhd, a government-owned company, and the Export-Import Bank of China (Cexim) agreed to the financial reallocation. Despite the cancellation of the TSGP and MPP projects, Malaysia still owed Cexim RM8 billion in loans.
The government's agreement is seen as a partial recovery of financial losses, marking a significant achievement in resolving outstanding debts through repurposing the RM5 billion to advance NPWSS. The project involves transferring water from Sungai Perak to Bukit Merah Dam, upgrading infrastructure, and building water treatment plants, with the aim of supplying up to 700 million litres of treated water daily to northern Perak and 300 million litres to Penang.
Once completed, the NPWSS will enhance water security, meet growing demand from households, industries, and farms, and support economic development in the region.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
