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KUCHING: The Bakun hydro dam project is expected to start generating electricity in October or November next year when the first of its eight turbines is commissioned. Sarawak Hidro Sdn Bhd’s general manager (civil) Tan Yong Long said each turbine could produce 300MW of electricity. He said the 205m-high concrete-faced rockfill dam, the world’s second highest after the 233m-high Shubuya dam in China, had an installed capacity of 2,400MW.
The bulk of the electricity will be exported to the peninsula through undersea submarine cables, the first of which is expected to be ready by 2016.
“The project’s main civil works are now 95% completed. The electrical and mechanical package is more than 90% complete,” he told a media briefing on the dam’s progress here on Wednesday night.
Sarawak Hidro, a wholly-owned subsidiary of Ministry of Finance Inc, is the project developer and manager. Tan said the second turbine is expected to be commissioned three months after the first, and the dam would be fully operational by 2011. He said impounding was expected to start in January by the latest, and that it would take eight months for the water level at the reservoir to reach the minimum operational level for tests to be carried out.
The reservoir will have a surface area of 695 sq km – the size of Singapore – when the water level reaches the maximum operating level of elevation at 228m. The Bakun catchment area covers some 14,750 sq m, which is as big as Kelantan. Tan said biomass removal through open burning and covering 455ha of the reservoir was now 80% complete. The entire job would be finished by next month.
“Works to remove the biomass started in January. It is tedious and labour intensive.”
On the rescue of wildlife, he said ground monitoring work to build up the wildlife inventory started two months ago. The wildlife would be relocated with the help of the Sarawak Forestry Corporation.
Allaying fears on the dam’s safety, Tan said: “Earthquake is not an issue. It will not make the dam fail.” However, he said instruments to detect earthquakes would be installed.
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Showing posts with label Bakun Dam Project. Show all posts
Showing posts with label Bakun Dam Project. Show all posts
Friday, November 6, 2009
Wednesday, September 9, 2009
Bakun Dam may begin to supply power in 2010
Wednesday September 9, 2009
Bakun dam may begin to supply power in 2010
First commissioning seen August next year with 300MW electricity.
The Bakun dam project in Sarawak has been steeped in controversy since the day it was first awarded to Tan Sri Ting Pek Khiing’s company Ekran Bhd, which was badly affected by the 1997 Asian financial crisis. The baton was then passed to the Finance Ministry (MOF) while the transmission cable portion was to be handled by Sime Darby Bhd, which pulled out after finding the escalating costs untenable.
A consortium, comprising Tenaga Nasional Bhd (TNB), Sarawak Energy Bhd (SEB) and MOF, then stepped in and over the last few months, the job momentum has been building up, potentially leading to tenders being called early next year and financing to be arranged middle of next year.
It now looks like the role of hydropower will be more prominent, post-2010. By end-2011, the Bakun dam will be South-East Asia’s largest power project, capable of generating 2,400MW electricity for supply to Peninsular Malaysia, Sabah and Sarawak, Brunei and Kalimantan
Analysts said the electricity from the 2,400-megawatt (MW) Bakun dam would be ready for use much earlier as “the first commissioning was expected in August 2010,” with the first generator producing 300MW of electricity. After that, the second and subsequent turbines would be able to commence operations at two-month intervals. By end-2011, the Bakun dam will be South-East Asia’s largest power project, capable of generating 2,400MW electricity for supply to Peninsular Malaysia, Sabah and Sarawak, Brunei and Kalimantan.
However, the Bakun hydropower project, which is expected to be completed by 2011, will still require the laying of undersea cables to transmit electricity to the peninsula. The cable project, for which the first line is to be completed in 2015, involves the construction of a 1,000km high-voltage direct-current transmission line and a 680km undersea cable. The submarine cable, when completed, will be the longest in the world.
An industry player expects the Government to open the tender process in the first quarter of next year and, subsequently, award the tender in the second half or end of the same year.
While he was not sure which company would be bidding for the projects, he expects five global submarine cable suppliers – ABB Ltd, Sumitomo Corp, Prysmian Cables & Systems, Siemens group and Nexant Inc – to do so. “Siemens may not be a submarine cable provider but it has expressed interest. I am not sure if these companies will form a consortium to bid for the project or on a stand-alone basis,” he added.
Industry players also pointed out that the construction of the undersea cable could present a geopolitical situation as it would “cross Indonesian waters”.
A “bilateral agreement” would be achieved by the time work on the sub-sea cables commenced, one of the players said.
Although the eight turbines would be ready by 2012 (while the first undersea line would be ready only three years later), not all eight will be utilised, given that Sarawak currently consumes less than 1,500MW. “There will be excess capacity if all the turbines were to be utilised and Sarawak will not be able to transmit the electricity produced to the peninsula as the sub-sea cable would not be ready yet,” an industry player said, adding that the authorities were in the midst of building transmission towers in Sarawak.
An analyst said the cost of Bakun dam alone, excluding the undersea cable, was estimated at RM6bil. “Assuming Bakun supplies 1,700MW, it would generate some RM1.6bil in revenue per year. This is based on it selling the power at 11 sen per unit at its gates to the transmission company,” he added. The generation cost for hydropower is cheaper basically because water from the river basins is free compared with the higher cost in procuring coal or gas to fire up a power plant. “The downside is that the cost of building a hydro dam is much more expensive than that for a normal coal or gas power plant.
“In Peninsular Malaysia, where demand for electricity is higher, it would be good if there could be more hydro dams. “Unfortunately, this is constrained by the number of rivers that are large enough to support a dam. Sarawak has a better potential,” the analyst said. “The electricity cost could be lower by one-third to half of the current tariff if it is produced and consumed in Sarawak,” an industry player said, adding that in the long run, hydropower costs were more stable.
In contrast, gas and coal prices may not be cheap in the future. “Ultimately, we’ll have to pay the market prices for gas, which is heavily subsidised by Petronas. It (the electricity cost) may be 50% higher.” The Bakun dam was first mooted more than three decades ago but was shelved just two years after it got off the ground in 1995. Sarawak Hidro Sdn Bhd, a wholly-owned unit of the MOF, was made project manager when the project was revived in 2000. The job to supply and install the turbines was awarded to Alstom Malaysia and IMPSA (M) Sdn Bhd in 2003. Sime Darby, meanwhile, received the Government’s approval in principle to become a major shareholder in Sarawak Hidro and the company to be set up to lay the transmission link to the peninsula, with a 60% stake in each entity. However, last June, Sime Darby decided not to proceed with this equity stake acquisition.
Earlier this year, the Federal Government approved the proposal for TNB and SEB to jointly take over the operation of the Bakun dam project from Sarawak Hidro. The takeover will be done through a leasing agreement and the joint partners will develop the transmission system from Sarawak to Peninsular Malaysia.
Analysts point out that transmitting hydropower from Sarawak does not mean that TNB will stop building more plants.“While the electricity for Sarawak helps, TNB would still need alternative sources as a diversification strategy. “There are some old power plants while (the power purchase) agreements with some of the first-generation independent power producers are set to expire in mid-2010,” an analyst said.
The demand for power is also expected to increase in tandem with the growth in gross domestic product. It is estimated that by 2014, the reserve margin may drop to 20% while new and secure sources of power should be obtained. As a long-term option, TNB is also looking at nuclear power.
The plan is for 10,000MW to be transmitted in stages to Peninsular Malaysia. Under the head of agreements signed last year between TNB and SEB, the latter would supply 3,000MW to TNB from 2017 to 2020 and 5,000MW from 2021 to 2030, based on a schedule to be mutually agreed by both parties. SEB estimated there could be 50 possible sites in Sarawak that could provide about 20,000MW of hydropower. It has indicated that the speed of its planting programme would depend on demand and whether there is a firm off-taker.
“Rio Tinto Alcan is still in negotiations with SEB while supply to Press Metal Bhd is supposed to start this month or next,” an analyst said. Rio Tinto Alcan is undertaking an RM8bil aluminium smelter that is expected to require 900MW while Press Metal’s aluminium smelter would require about 90MW although demand could rise to 600MW by 2011.
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Bakun dam may begin to supply power in 2010
First commissioning seen August next year with 300MW electricity.
The Bakun dam project in Sarawak has been steeped in controversy since the day it was first awarded to Tan Sri Ting Pek Khiing’s company Ekran Bhd, which was badly affected by the 1997 Asian financial crisis. The baton was then passed to the Finance Ministry (MOF) while the transmission cable portion was to be handled by Sime Darby Bhd, which pulled out after finding the escalating costs untenable.
A consortium, comprising Tenaga Nasional Bhd (TNB), Sarawak Energy Bhd (SEB) and MOF, then stepped in and over the last few months, the job momentum has been building up, potentially leading to tenders being called early next year and financing to be arranged middle of next year.
It now looks like the role of hydropower will be more prominent, post-2010. By end-2011, the Bakun dam will be South-East Asia’s largest power project, capable of generating 2,400MW electricity for supply to Peninsular Malaysia, Sabah and Sarawak, Brunei and Kalimantan
Analysts said the electricity from the 2,400-megawatt (MW) Bakun dam would be ready for use much earlier as “the first commissioning was expected in August 2010,” with the first generator producing 300MW of electricity. After that, the second and subsequent turbines would be able to commence operations at two-month intervals. By end-2011, the Bakun dam will be South-East Asia’s largest power project, capable of generating 2,400MW electricity for supply to Peninsular Malaysia, Sabah and Sarawak, Brunei and Kalimantan.
However, the Bakun hydropower project, which is expected to be completed by 2011, will still require the laying of undersea cables to transmit electricity to the peninsula. The cable project, for which the first line is to be completed in 2015, involves the construction of a 1,000km high-voltage direct-current transmission line and a 680km undersea cable. The submarine cable, when completed, will be the longest in the world.
An industry player expects the Government to open the tender process in the first quarter of next year and, subsequently, award the tender in the second half or end of the same year.
While he was not sure which company would be bidding for the projects, he expects five global submarine cable suppliers – ABB Ltd, Sumitomo Corp, Prysmian Cables & Systems, Siemens group and Nexant Inc – to do so. “Siemens may not be a submarine cable provider but it has expressed interest. I am not sure if these companies will form a consortium to bid for the project or on a stand-alone basis,” he added.
Industry players also pointed out that the construction of the undersea cable could present a geopolitical situation as it would “cross Indonesian waters”.
A “bilateral agreement” would be achieved by the time work on the sub-sea cables commenced, one of the players said.
Although the eight turbines would be ready by 2012 (while the first undersea line would be ready only three years later), not all eight will be utilised, given that Sarawak currently consumes less than 1,500MW. “There will be excess capacity if all the turbines were to be utilised and Sarawak will not be able to transmit the electricity produced to the peninsula as the sub-sea cable would not be ready yet,” an industry player said, adding that the authorities were in the midst of building transmission towers in Sarawak.
An analyst said the cost of Bakun dam alone, excluding the undersea cable, was estimated at RM6bil. “Assuming Bakun supplies 1,700MW, it would generate some RM1.6bil in revenue per year. This is based on it selling the power at 11 sen per unit at its gates to the transmission company,” he added. The generation cost for hydropower is cheaper basically because water from the river basins is free compared with the higher cost in procuring coal or gas to fire up a power plant. “The downside is that the cost of building a hydro dam is much more expensive than that for a normal coal or gas power plant.
“In Peninsular Malaysia, where demand for electricity is higher, it would be good if there could be more hydro dams. “Unfortunately, this is constrained by the number of rivers that are large enough to support a dam. Sarawak has a better potential,” the analyst said. “The electricity cost could be lower by one-third to half of the current tariff if it is produced and consumed in Sarawak,” an industry player said, adding that in the long run, hydropower costs were more stable.
In contrast, gas and coal prices may not be cheap in the future. “Ultimately, we’ll have to pay the market prices for gas, which is heavily subsidised by Petronas. It (the electricity cost) may be 50% higher.” The Bakun dam was first mooted more than three decades ago but was shelved just two years after it got off the ground in 1995. Sarawak Hidro Sdn Bhd, a wholly-owned unit of the MOF, was made project manager when the project was revived in 2000. The job to supply and install the turbines was awarded to Alstom Malaysia and IMPSA (M) Sdn Bhd in 2003. Sime Darby, meanwhile, received the Government’s approval in principle to become a major shareholder in Sarawak Hidro and the company to be set up to lay the transmission link to the peninsula, with a 60% stake in each entity. However, last June, Sime Darby decided not to proceed with this equity stake acquisition.
Earlier this year, the Federal Government approved the proposal for TNB and SEB to jointly take over the operation of the Bakun dam project from Sarawak Hidro. The takeover will be done through a leasing agreement and the joint partners will develop the transmission system from Sarawak to Peninsular Malaysia.
Analysts point out that transmitting hydropower from Sarawak does not mean that TNB will stop building more plants.“While the electricity for Sarawak helps, TNB would still need alternative sources as a diversification strategy. “There are some old power plants while (the power purchase) agreements with some of the first-generation independent power producers are set to expire in mid-2010,” an analyst said.
The demand for power is also expected to increase in tandem with the growth in gross domestic product. It is estimated that by 2014, the reserve margin may drop to 20% while new and secure sources of power should be obtained. As a long-term option, TNB is also looking at nuclear power.
The plan is for 10,000MW to be transmitted in stages to Peninsular Malaysia. Under the head of agreements signed last year between TNB and SEB, the latter would supply 3,000MW to TNB from 2017 to 2020 and 5,000MW from 2021 to 2030, based on a schedule to be mutually agreed by both parties. SEB estimated there could be 50 possible sites in Sarawak that could provide about 20,000MW of hydropower. It has indicated that the speed of its planting programme would depend on demand and whether there is a firm off-taker.
“Rio Tinto Alcan is still in negotiations with SEB while supply to Press Metal Bhd is supposed to start this month or next,” an analyst said. Rio Tinto Alcan is undertaking an RM8bil aluminium smelter that is expected to require 900MW while Press Metal’s aluminium smelter would require about 90MW although demand could rise to 600MW by 2011.
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Monday, September 7, 2009
TENAGA : Clarification on Cable Bond Fund
CLARIFICATION IN RELATION TO ARTICLE
CLARIFICATION IN RELATION TO THE ARTICLE ENTITLED "RM10B BONDS TO FUND CABLE
PROJECT - FIRST ISSUANCE TO COMMENCE EARLY NEXT YEAR" DATED 4 SEPTEMBER 2009
PUBLISHED BY STAR BIZ
We wish to clarify that Tenaga Nasional Berhad ("TNB") and Sarawak Energy Berhad ("SEB") (collectively referred to as the Consortium) are currently exploring various options with regards to the proposed financing for the implementation of the undersea cable from Sarawak to Peninsular Malaysia.
The abovesaid bond issuance as quoted in Star Biz article on 4 September 2009, is only one of the options being explored by the Consortium.
The Consortium has yet to finalise and decide on the preferred option and details.
The Consortium will make the necessary announcement to Bursa once the decision
on the preferred option has been made.
This announcement is dated 7 September 2009.
*
CLARIFICATION IN RELATION TO THE ARTICLE ENTITLED "RM10B BONDS TO FUND CABLE
PROJECT - FIRST ISSUANCE TO COMMENCE EARLY NEXT YEAR" DATED 4 SEPTEMBER 2009
PUBLISHED BY STAR BIZ
We wish to clarify that Tenaga Nasional Berhad ("TNB") and Sarawak Energy Berhad ("SEB") (collectively referred to as the Consortium) are currently exploring various options with regards to the proposed financing for the implementation of the undersea cable from Sarawak to Peninsular Malaysia.
The abovesaid bond issuance as quoted in Star Biz article on 4 September 2009, is only one of the options being explored by the Consortium.
The Consortium has yet to finalise and decide on the preferred option and details.
The Consortium will make the necessary announcement to Bursa once the decision
on the preferred option has been made.
This announcement is dated 7 September 2009.
*
Saturday, September 5, 2009
CIMB lead arranger for Bakun's RM 10b bonds
Saturday September 5, 2009
CIMB lead arranger for Bakun’s RM10b bonds
PETALING JAYA: CIMB Bhd is the lead arranger for the RM10bil bond issue, to be raised on a staggered basis over eight years, for the consortium building the Bakun transmission cable project.
“I can confirm that Tenaga and the consortium members – Sarawak Energy Bhd and the Finance Ministry – will raise about RM10bil,” Tenaga Nasional Bhd (TNB) CEO Datuk Seri Che Khalib Mohamad Noh told Reuters yesterday.
StarBiz reported yesterday that the RM10bil would represent the debt portion while another RM2.5bil would make up the equity portion for the financing that would be raised on a project finance basis. The issuance of the first tranche would commence early next year and the jobs for the 1,000km high voltage direct transmission line and 680km undersea cable were likely to be tendered in the first quarter of next year. The Bakun Dam has a capacity of 2,400 megawatts (MW). By 2015, the first line is expected to be ready for transmission of 800-1,000MW of hydroelectricity to the peninsula. This will be followed by another 800-1,000MW by 2017 when the second line is completed. Over the long term, Sarawak plans to transmit more electricity to the peninsula.
On May 7 last year, TNB told Bursa Malaysia it had signed a heads of agreement with Sarawak Energy whereby the latter would develop electricity generation capacity to supply 3,000MW to TNB from 2017 to 2020 and a further 5,000MW from 2021 to 2030.This will be based on a schedule to be mutually agreed by both parties. The two parties also agreed to jointly collaborate and undertake feasibility studies to determine the inter-connection framework for the long-term power transmission from Sarawak to the peninsula.
CIMB lead arranger for Bakun’s RM10b bonds
PETALING JAYA: CIMB Bhd is the lead arranger for the RM10bil bond issue, to be raised on a staggered basis over eight years, for the consortium building the Bakun transmission cable project.
“I can confirm that Tenaga and the consortium members – Sarawak Energy Bhd and the Finance Ministry – will raise about RM10bil,” Tenaga Nasional Bhd (TNB) CEO Datuk Seri Che Khalib Mohamad Noh told Reuters yesterday.
StarBiz reported yesterday that the RM10bil would represent the debt portion while another RM2.5bil would make up the equity portion for the financing that would be raised on a project finance basis. The issuance of the first tranche would commence early next year and the jobs for the 1,000km high voltage direct transmission line and 680km undersea cable were likely to be tendered in the first quarter of next year. The Bakun Dam has a capacity of 2,400 megawatts (MW). By 2015, the first line is expected to be ready for transmission of 800-1,000MW of hydroelectricity to the peninsula. This will be followed by another 800-1,000MW by 2017 when the second line is completed. Over the long term, Sarawak plans to transmit more electricity to the peninsula.
On May 7 last year, TNB told Bursa Malaysia it had signed a heads of agreement with Sarawak Energy whereby the latter would develop electricity generation capacity to supply 3,000MW to TNB from 2017 to 2020 and a further 5,000MW from 2021 to 2030.This will be based on a schedule to be mutually agreed by both parties. The two parties also agreed to jointly collaborate and undertake feasibility studies to determine the inter-connection framework for the long-term power transmission from Sarawak to the peninsula.
Friday, September 4, 2009
RM 10 b Bonds to fund cable project
The Star
Friday September 4, 2009
RM10b bonds to fund cable project
By YAP LENG KUEN
First issuance to commence early next year
PETALING JAYA: Tenaga Nasional Bhd (TNB) and other members of the consortium responsible for the Bakun transmission cable project are likely to raise RM10bil worth of bonds on a staggered basis to fund the eight-year job.
StarBiz has learnt that the first issuance would commence early next year and the consortium was in discussion with the Government for a potentially higher credit wrap to ensure better investor appeal.
“The funding will be sourced domestically as liquidity is still strong. But the bond market is still conservative and investor appetite is still towards the AAA grades,’’ a source said.
In May, RAM Ratings had reaffirmed the long-term ratings of AA1(s) with a stable outlook for TNB’s repackaged Tenaga Income Securities represented by two tranches amounting to RM150mil.
However, a similar rating would not be good enough for the consortium to raise such a big amount and over the repayment tenure of the bonds which may stretch 20 to 25 years.
The consortium – comprising TNB, Sarawak Energy Bhd and the Ministry of Finance (MOF) – is likely to submit its first tranche of bonds for rating some time in the middle of next year.
No doubt the consortium will get to pay lower interest on a higher investment grade but the major benefit will be the cost savings passed back to consumers via a cheaper landed cost of electricity.
“This cost that includes generation and transmission is still being worked out,’’ the source said, adding that jobs for the 1,000km high voltage direct transmission line and 680km undersea cable were likely to be tendered in the first quarter of next year.
The shareholding structure is still not finalised, and neither is the actual amount to be raised.
“The actual figure has not been finalised but the amount will be raised by the consortium on a project finance basis which includes equity (20% or about RM2.5bil) and debt (80%),’’ the source said.
The debt portion is in the form of bonds in tranches depending on the funding requirements.
It will not be raised in one go but over eight years.
On comments that part of the financing should be in US dollars since a lot of imported materials will be used, the source explains that since the project revenue will be in ringgit, raising even a part of the bonds in US dollars will result in a long-term mismatch problem.
Moreover, for US dollar procurements, the consortium can take a short-term hedge.
“Anyway, the country is still enjoying a positive trade balance. So it will not have a negative impact on the balance of payments,’’ he added.
The cable project, which upon completion will result in the longest undersea transmission cable in the world, will cater for the 2,400-megawatt (MW) Bakun hydroelectric dam.
Electricity will be transferred via transmission towers from the RM6bil dam in the Kapit division in central Sarawak to the Bintulu division along the coastal belt and then southwards to the Kuching division. From the southernmost tip of Kuching, the last transmission tower will join the undersea cable that will transmit electricity across the South China Sea to Johor, and then to the rest of the peninsula.At least 10,000MW will be exported to Peninsular Malaysia.
TNB has been a strong advocate for hydro electricity which is more cost effective in the long run compared with electricity produced by coal-fuelled plants.
The fact that hydroelectricity will only be transmitted to the peninsula at the earliest by 2015 (when the first line is ready for take-up of 800 to 1,000MW) poses a challenge for the Sarawak government and MOF as the Bakun hydro generating plant is expected to be completed about two to three years earlier.
A lot of hope is pinned on high energy users such as Rio Tinto Alcan (which is investing in a RM8bil aluminium smelter together with Cahya Mata Sarawak Bhd); Tokuyama Corporation (which recently announced plans to set up a RM2.36bil polycrystalline manufacturing plant in Sarawak) and a potential foreign consortium for a solar panel plant at the Sarawak Corridor of Renewable Energy (SCORE).
In the long term, Sarawak hopes to be an exporter of electricity.
Sarawak Energy had projected some time back that the state would have a total capacity of 10,000MW, out of which 75% will come from hydro.
The projected peak demand through organic growth is expected to reach 1,500 MW, while smelter and other heavy energy users will take up about 4,000 MW. The rest would be exported from Bakun to the peninsula (2,400 MW) and neighbouring states (1,200 MW).
Friday September 4, 2009
RM10b bonds to fund cable project
By YAP LENG KUEN
First issuance to commence early next year
PETALING JAYA: Tenaga Nasional Bhd (TNB) and other members of the consortium responsible for the Bakun transmission cable project are likely to raise RM10bil worth of bonds on a staggered basis to fund the eight-year job.
StarBiz has learnt that the first issuance would commence early next year and the consortium was in discussion with the Government for a potentially higher credit wrap to ensure better investor appeal.
“The funding will be sourced domestically as liquidity is still strong. But the bond market is still conservative and investor appetite is still towards the AAA grades,’’ a source said.
In May, RAM Ratings had reaffirmed the long-term ratings of AA1(s) with a stable outlook for TNB’s repackaged Tenaga Income Securities represented by two tranches amounting to RM150mil.
However, a similar rating would not be good enough for the consortium to raise such a big amount and over the repayment tenure of the bonds which may stretch 20 to 25 years.
The consortium – comprising TNB, Sarawak Energy Bhd and the Ministry of Finance (MOF) – is likely to submit its first tranche of bonds for rating some time in the middle of next year.
No doubt the consortium will get to pay lower interest on a higher investment grade but the major benefit will be the cost savings passed back to consumers via a cheaper landed cost of electricity.
“This cost that includes generation and transmission is still being worked out,’’ the source said, adding that jobs for the 1,000km high voltage direct transmission line and 680km undersea cable were likely to be tendered in the first quarter of next year.
The shareholding structure is still not finalised, and neither is the actual amount to be raised.
“The actual figure has not been finalised but the amount will be raised by the consortium on a project finance basis which includes equity (20% or about RM2.5bil) and debt (80%),’’ the source said.
The debt portion is in the form of bonds in tranches depending on the funding requirements.
It will not be raised in one go but over eight years.
On comments that part of the financing should be in US dollars since a lot of imported materials will be used, the source explains that since the project revenue will be in ringgit, raising even a part of the bonds in US dollars will result in a long-term mismatch problem.
Moreover, for US dollar procurements, the consortium can take a short-term hedge.
“Anyway, the country is still enjoying a positive trade balance. So it will not have a negative impact on the balance of payments,’’ he added.
The cable project, which upon completion will result in the longest undersea transmission cable in the world, will cater for the 2,400-megawatt (MW) Bakun hydroelectric dam.
Electricity will be transferred via transmission towers from the RM6bil dam in the Kapit division in central Sarawak to the Bintulu division along the coastal belt and then southwards to the Kuching division. From the southernmost tip of Kuching, the last transmission tower will join the undersea cable that will transmit electricity across the South China Sea to Johor, and then to the rest of the peninsula.At least 10,000MW will be exported to Peninsular Malaysia.
TNB has been a strong advocate for hydro electricity which is more cost effective in the long run compared with electricity produced by coal-fuelled plants.
The fact that hydroelectricity will only be transmitted to the peninsula at the earliest by 2015 (when the first line is ready for take-up of 800 to 1,000MW) poses a challenge for the Sarawak government and MOF as the Bakun hydro generating plant is expected to be completed about two to three years earlier.
A lot of hope is pinned on high energy users such as Rio Tinto Alcan (which is investing in a RM8bil aluminium smelter together with Cahya Mata Sarawak Bhd); Tokuyama Corporation (which recently announced plans to set up a RM2.36bil polycrystalline manufacturing plant in Sarawak) and a potential foreign consortium for a solar panel plant at the Sarawak Corridor of Renewable Energy (SCORE).
In the long term, Sarawak hopes to be an exporter of electricity.
Sarawak Energy had projected some time back that the state would have a total capacity of 10,000MW, out of which 75% will come from hydro.
The projected peak demand through organic growth is expected to reach 1,500 MW, while smelter and other heavy energy users will take up about 4,000 MW. The rest would be exported from Bakun to the peninsula (2,400 MW) and neighbouring states (1,200 MW).
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