The federal government will build a new dam as well as enlarging the existing Mengkuang dam in Penang in a bid to increase water capacity in the state by 3.8 times.
State Barisan Nasional working committee chairman, Dr Teng Hock Nan, said the RM1.2 billion project would be implemented soon.
To this end, an agreement will be inked between Energy, Green Technology and Water Minister Peter Chin Fah Kui and Penang Chief Minister Lim Guan Eng in Putrajaya on Thursday.
Dr Teng said the deal showed that the federal government had not forsaken Penang although the BN was no longer at the helm.
Dr Teng said that for the past 50 years, the government had been giving attention to the state’s water supply needs, which included the construction of Air Itam, Teluk Bahang and Mengkuang dams.