KL wins power deal in RI

KL wins power deal in RI

KUALA LUMPUR (AFP): A Malaysian consortium comprising Sikap Group, national power firm Tenaga Nasional and Renong Bhd. are to build a 24-billion-ringgit (US$9.6 billion dollar) power plant at Bukit Lasam, Indonesia, company officials said yesterday.

Sikap Group chief executive Zainal Osman said a memorandum of understanding had been signed between the Malaysian companies and the Indonesian partners Latif Corp.

"Approval has been obtained for the project from Permodalan Modal Asing, Indonesia's foreign investment corporation," he was quoted as saying by Bernama news agency.

There were no details on the break-down in the equity structure.

The 5,000-megawatt coal-fired power plant would be able to generate electricity in five years.

The project would be undertaken in three phases, Osman said, adding that coal would be a cheaper alternative to gas or oil resources as the coal mine in Bukit Lasam could last for more than 50 years.