Sikap secures power deal

Sikap secures power deal

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) power plant at Bukit
Asam, Indonesia, company officials said.

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 Asam could last for more than
50 years.