Segari Energy Ventures (Lumut)

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Segari Energy Ventures (SEV), formerly Sikap Power Sdn. Bhd., was originally a joint venture consisting of Malakoff Bhd (75%), Tenaga Nasional Bhd (TNB) (20%), and the Employees Provident Fund (EPF) (5%). Through a BOO arrangment, SEV developed a 1303-MW (2x 651.5-MW) base-load power plant at Lumut Perak State. The project also involved construction of a 120-mile, 500kV transmission line between Ayer Tawar and Kunjong, Kedah, 2x275kV transmission lines connections (91.6km) to the Ayer Tawar sub-station, and a 183km gas pipeline Meru, Klang to Lumut. The first and second generating units were commissioned in May 1996 and May 1997, respectively. Teknik Janauasa Sdn. Bhd (TJSB) was the project operator. The EPC contractor and equipment supplier was ABB Power Generation Sdn. Bhd and the technical consultant was SWEC Zainal Sdn. Bhd. Funding for the project was raised entirely from local capital market and secured on a floating charge and assignment of collateral on all contracts. Equity accounted for $440 million, while $550 million was raised via fixed-rate debt securities and another $550 million was raised via floating non-recourse loans (15-year term) from Bank Bumiputra Malaysia Bhd and Malayan Banking Bhd. A 21-year PPA was signed in 1993 with Tenaga Nasional Bhd. (TNB). In June of 2004, Malakoff agreed to buy an additional 18.75% in SEV from TNB for US$98 million, increasing its stake to 93.75%. TNB concurrently sold its remaining 1.25% stake to EPF for US$6.58 million.