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Malaysian private power plant to supply Thailand

| Source: REUTERS

Malaysian private power plant to supply Thailand

KUALA LUMPUR (Reuter): Malaysia will soon license a consortium
to build a 650 megawatt (MW) power plant to supply electricity to
Thailand, Energy, Posts and Telecommunications Minister S. Samy
Vellu said yesterday.

The minister said Landmarks Holdings, Time Engineering and
Yayasan Islam Perlis will form the Perlis Power consortium to
build the 1.5 billion ringgit (US$579 million) plant in Perlis
state on the border with Thailand.

He said Perlis Power, the sixth independent power producer to
emerge since the state utility Tenaga Nasional lost its monopoly
in 1992, would be given a license soon.

The gas-fired plant in Perlis will begin operating in late
1997 or early 1998, Samy Vellu said.

"It is my dream that Malaysia should become the region's
supplier of power. And this is the first step towards that," he
told reporters after opening a power seminar in Kuala Lumpur.

He said Perlis Power would build a link to supply power to
Thailand, which he described as the first part of a power grid
linking the Association of Southeast Asian Nations -- Brunei,
Indonesia, Malaysia, Singapore, Thailand and the Philippines.

Samy Vellu added that he and the Malaysian government's
economic adviser, Daim Zainuddin, would meet Thai officials next
month to discuss the power supply deal.

He said YTL Corporation, which is building two power stations
in Trengganu and Johor states, is discussing proposals to build a
500 MW plant to supply Singapore.

The minister said Malaysia was proposing similar power supply
links with Indonesia, with a planned transmission line through
the islands of Sumatra and Java.

Batam and Bintan

He said other ASEAN interconnection projects included the
linking of Malaysia's Borneo states of Sarawak and Sabah with the
sultanate of Brunei, and another connecting Malaysia's southern
state of Johor, Singapore and the Indonesian islands of Batam and
Bintan.

Malaysia had potential to generate and sell electricity from
Sarawak and Sabah, he said. "We want both states to be the
centralized area to supply power to the region."

Malaysia has already licensed Ekran to build a 2,400 MW hydro-
electric power station in Bakun, Sarawak, which would supply
power to all of Borneo including Indonesia's Kalimantan as well
as peninsular Malaysia.

He said the six independent power producers in Malaysia, which
are building seven power plants, would help give Malaysia an
electricity surplus to sell to the region.

"We will have about 11,000 MW of power in 1997 when all the
(power producers) and Tenaga Nasional plants come on line.
Malaysia will only need about 8,000 MW and the rest will either
be kept as reserve or sold," he said.

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