JAKS Resources Bhd proposed 1,200MW power plant in Vietnam
KUALA LUMPUR: JAKS Resources Bhd
has formalised the financial close for its US$1.87bil (RM8.07bil) Vietnam’s build-operate-transfer (BOT) coal-fired thermal power plant project (IPP project).
In a statement, the construction and steel pipe manufacturing company said it had registered its shareholder loan agreement with the State Bank of Vietnam and received the issuance of a legal opinion from the Vietnamese Ministry of Justice.
The 25-year BOT 2x600 megawatt IPP project at Phuc Commune, Kinh Mon District in Hai Duong Province would be spearheaded by Jaks Hai Duong Power Co Ltd (JHDP), a joint venture company owned by JAKS and China Power Engineering Consulting Group Co Ltd (CPECC).
JAKS said following this development, JHDP had all the necessary approvals for construction works to start.
JAKS chief executive officer Andy Ang Lam Poah said the company was ready to move on to the execution phase with this final go-ahead from the Vietnamese regulators in hand.
“The preliminary construction work on the IPP project has started, with land clearing and boundary walls completed. With all the approvals in place, construction work is expected to accelerate from here on,” he said.
JAKS said the total engineering, procurement and construction (EPC) works for the project amounted to US$1.52bil (RM6.56bil).
The EPC contract 1 valued at US$1.06bil (RM4.57bil) was awarded to a CPECC-led consortium, while JAKS was awarded the EPC contract 2 worth US$454.5mil (RM1.96bil) for the civil and mechanical and electrical engineering portion over a four-year construction period of the IPP, the statement said.
The contribution from EPC contract 2 to JAKS’s infrastructure construction will be substantial, raising its orderbook to RM3.5bil for the year ending 2015 and is expected to give a positive impact on its construction division from financial year 2016, said the company.
On completion of construction and the start of commercial operations of the Vietnam IPP project, JAKS would also enjoy recurrent concession-type earnings from the generation and sale of power under its power purchasing agreement with the Vietnamese government, JAKS said.
Meanwhile, Ang said domestically, JAKS was also pursuing a construction tenderbook of about RM3.0bil in various road, water and sewerage infrastructure projects, as well as its mixed development project in USJ 1, Subang Jaya, with potential estimated gross development value of RM2bil. - Bernama
