KEDAH, May 20, 2026 — Economy Minister Akmal Nasrullah Mohd Nasir has confirmed that the federal government will assume control of the long-delayed Sungai Limau Water Treatment Plant (LRA) project in Baling, Kedah, after the state government failed to complete it.
In a video posted on X today during a site visit, Akmal Nasir stated that the federal government is inheriting a project that has only achieved about 25% progress despite being awarded years ago.
The project, part of a larger federal-funded initiative to address Kedah’s water supply issues, was originally awarded in 2021 to Widad Builders Sdn Bhd for approximately RM89.8–RM90 million. The contract was terminated last year due to repeated delays.
Earlier reports from May 2026 indicated the project had reached only 15–20% completion, prompting the federal government to step in with an additional RM50 million allocation to revive it, including appointing a new contractor via a Notice of Change (NOC).
Akmal Nasir urged the implementing ministry to blacklist the original contractor to prevent similar abandonments of critical infrastructure projects. “We are forced to take over from the Kedah state government,” he said, highlighting multi-year delays since 2021.
In the video, Akmal walks through the site, pointing out unfinished piles and structures amid stagnant water, criticising the prolonged delays that have now pushed the expected completion to 2029. He emphasised that such “sick” projects burden federal resources and called for accountability.
The Sungai Limau LRA was intended to boost treated water supply in the Baling area as part of broader efforts funded by the federal government, including allocations under Pengurusan Aset Air Berhad (PAAB).
This development comes amid ongoing scrutiny of water infrastructure projects in Kedah, with the federal government increasingly intervening to ensure completion for public benefit.
The Ministry of Economy has not issued further details on the new tender process or timeline beyond the projected 2029 completion.
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