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October 23, 2009 23:46 PM
Sumatra-Peninsular Malaysia Electrical Interconnection Project To Start Before 2012
KUALA LUMPUR, Oct 23 (Bernama) -- The electrical power interconnection project between Sumatra, Indonesia and Peninsular Malaysia is expected to start before 2012, Tenaga Nasional Bhd (TNB) president and chief executive officer, Datuk Seri Che Khalib Mohd Noh said on Friday.
"We have already started discussions with Asian Development Bank (ADB) and other financial institutions. So hopefully by next year we can complete all the studies.
"Once we get all the agreements in terms of legal, maybe in 2011 or by 2012 we can start the project and it will take between two and three years to complete," he told reporters after signing heads of agreement with Perusahaan Listrik Negara (PLN) Indonesia, here.
Representing PLN is its president director Fahmi Mochtar.
PLN is a government-owned corporation which has a monopoly on electricity distribution in Indonesia.
The signing ceremony was witnessed by Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui and TNB chairman Tan Sri Leo Moggie.
On the cost of the project, Che Khalib said: "We have to look at the technical feasibility of implementing this project that engaged several consultants.
"It is proven that this project is financially viable and that is why World Bank and ADB would like to be involved in financing it. So, I don't think we can have a number yet," he added.
The interconnection will have a capacity of 600 megawatts and it is expected to be operational by 2015.
"The interconnection will definitely increase the reliability of power supply systems of both countries.
"Hence, full support and cooperation of both the governments of Indonesia and Malaysia is critical in ensuring the success of this project," Che Khalib said.
-- BERNAMA
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