Malaysian firms to build power plant

Malaysian firms to build power plant

KUALA LUMPUR (AFP): Malaysian power giant Tenaga Nasional
Bhd's unit will spend six billion ringgit (US$2.4 billion) to buy
reclaimed land and build a power plant and a coal yard, news
reports said yesterday.

Tenaga's unit -- TNB Janamanjung Sdn. Bhd. -- will raise most
of the funds to buy the 800 acres of land off central Perak state
and build the plant and coal yard, Ahmad Tajuddin Ali, the
executive chairman of Tenaga

"We are now looking at the best financial arrangement...
through equity but mostly through direct financing," Tajuddin,
who is also TNB Janamanjung chairman, was quoted as saying by the
Business Times.

Officials said the reclamation is expected to start next year
and end by 2002. The 2,000-megawatt coal-fired power plant and
coal yard will be built during the reclamation.

Janamanjung had late Friday signed a memorandum of
understanding with Desa Kilat Sdn. Bhd. to buy 320 hectares of
land to be reclaimed by Desa.

Janamanjung had also signed a memorandum of agreement with
Lekir Bulk Terminal Sdn. Bhd. for coal-handling services.

Under this pact, Jamananjung will be able to import coal and
fuel, via a jetty to be built and owned by Lekir.

Tajuddin said Janamanjung is scheduled to sign an agreement
with Tenaga in June or July whereby Tenaga will buy electricity
from the new plant.

There are now five independent power producers -- Port Dickson
Power Sdn. Bhd., YTL Power Generation Sdn. Bhd., Powertek Bhd.,
Genting Sanyen Power Sdn. Bhd., and Segari Energy Ventures Sdn.
Bhd. Together they account for 30 percent of the country's
electricity.

Lekir officials said the reclamation project will cover 20,000
acres of reclaimed land off Perak state. It is expected to be
developed within 15 to 20 years. They did not say how much the
reclamation would cost or how it would be funded.

Desa Kilat is a joint venture led by listed Malakoff Bhd which
has a 54 percent stake. Perbadanan Kemajuan Negeri Perak and
Halim Rasip Holdings Sdn. Bhd. have a combined 26 percent stake
and Gantan Sakti Sdn. Bhd, 20 percent.

Lekir is a consortium with the same partners but different
equity. Perbandanan Kemajuan Negeri Perak and Halim Rasip have a
combined 51 percent stake, Malakoff 29 percent and Gantang 20
percent.