Tenaga to proceed with east coast plants

By Shahriman Johari
Published: 2008/10/13
BTimes
The utility will use internal funds to pay for the two hydro-electric plants in Pahang and Terengganu, but it welcomes proposals from bidders to arrange funding

TENAGA Nasional Bhd (TNB) will go ahead with its plan to build two new hydro-electric plants in Pahang and Terengganu despite poor response to a tender.The national utility called for bids to build the 212-megawatt (MW) plant in Hulu Terengganu but large players in the industry like Japan's Mitsubishi and Sumitomo, France's Alstom and Germany's Siemens, decided not to bid for the job."Yes, we're going ahead," TNB chief executive officer Datuk Che Khalib Mohamad Noh told Business Times.An industry source said the project would probably cost a third more than expected due to the rising cost of materials like steel. This means that one plant could cost up to RM2 billion.

"We have not reached that level yet," Che Khalib said when asked about the cost.TNB had said that it will use internal funds to pay for the two plants. The utility had also welcomed proposals from bidders to arrange funding for the project.

The Hulu Terengganu project is located north of the Kenyir Dam in Kuala Berang. Its detailed environmental assessment report is being reviewed currently.

As for the 372 MW Ulu Jelai hydro-electric plant in Pahang, TNB is negotiating directly with a privately-held company to build it. Both plants are due to start operations after 2012.

The country already has several hydro-electric dams, including in Cameron Highlands, Temenggor and Kenyir. Currently, hydro-electric plants in Peninsular Malaysia produce some 1,911MW, TNB said on its website.This accounts for some five per cent of the industry's total generation capacity.The bulk of hydro capacity comes from stations in Sungai Perak, followed by the Kenyir station in Terengganu.Pahang provides the smallest capacity from hydro-electric plants in Cameron Highlands.