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.