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.