MMC may propose Tanjung Bin expansion

01 May 2010 , By The Star

CEO: The power plant has available land, transmission capacity

MMC Corp Bhd may propose to the Government to expand its Tanjung Bin power plant by 800MW to increase power supply in Peninsular Malaysia by 2015 in an effort to prevent the electricity reserve margin from falling below 20%.

This follows the decision not to channel the power from Bakun Hydroelectric Dam to the peninsula, given the power needs of Sarawak and the heavy industries that will be built in the state.

“Hence, we may be invited by the Government to expand our Tanjung Bin coal-fired power plant as there is available land and transmission capacity to supply to the national grid,’’ said group CEO Datuk Hasni Harun.

“Whatever materialises will depend on studies done by the Electricity Commission and other relevant ministries.’’

Speaking to reporters after the company’s AGM yesterday, Hasni said Tanjung Bin had sufficient land around its existing power plant to cater for an additional 1,400MW to be planted up.

Any expansion to the Tanjung Bin would save the Government RM100mil in cost as the transmission grid that Tanjung Bin was connected to did not need to be upgraded, he added.

He said the cost for the additional 800MW would range from US$1bil to US$1.2bil, depending on the foreign exchange, technology and turbines used.

Hasni, who said it would take up to three years to build a new power plant, hopes the Government would invite existing independent power producers to submit proposals for the planting of new capacity.

This was because the country would need more power than what the additional capacity Tenaga Nasional Bhd’s plant in Manjung, Perak, would supply, he said.

Hasni also said MMC’s 70%-owned subsidiary Aliran Ihsan Resources Bhd was working to extend its scope of business beyond the Johor water sector and expand its involvement in that industry.

“We are currently in advanced stages of negotiations with several states on this initiative,’’ he said.

Hasni said MMC was hopeful it would “lock in one or two” water treatment plants in other states.

On Jazan Economic City (JEC), Hasni said MMC was looking to capitalise on its investment in the project in Saudi Arabia as plans for an initial public offering had been shelved.

That would see JEC shareholders – MMC and the Saudi Binladin Group – pour in 3 billion riyals in capital, of which equity would be a third, before further funding from the government could be secured.