Telok Gong Power Plant 1

Cancelled

In 1993 Randomwin Sdn Bhd (renamed Powertek Sdn Bhd in January 1996) began development of the Telok Gong Power Plant (TGPS1) in Malacca State, receiving an IPP license in December 1993. The 440MW gas-fired TGPS1 plant was to purchase fuel from Petronas under an agreement signed on March 1, 1994, and would sell electricity to Tenaga Nasional under a 21-year power purchase agreement (PPA) signed on December 10, 1993. The PPA included fixed and variable charges and a fuel pass-through provision. Construction began in February 1994, and the plant entered service in April 1995, and was initially operated by Imatran Voima Oy (Finland). The plant is distinct from the 720MW TGPS2 plant operated by Panglima Power (a Powertek subsidiary) also located at Telok Gong. Powertek Sdn Bhd was initially owned by the Melaka state government (14.83%), Cergas Unggul Sdn Bhd (25.96%), Arab Malaysian Development Berhad (22.5%) and IVO Group (7.42%, Finland). Powertek was listed on the Main Board of the Bursa Malaysia Securities Berhad (formerly known as the Kuala Lumpur Stock Exchange Berhad) in 1996, but on 30 April 2003 Powertek became a wholly-owned subsidiary of Tanjong Energy Holdings Sdn Bhd (TEH) and was taken private. TEH was a wholly-owned subsidiary of Tanjong public limited company, incorporated in England and listed on both the Bursa Malaysia Securities Berhad and the London Stock Exchange. Financial closure was reached in April 1994. The project’s initial cost was US$440 million, and had an 80:20 debt:equity ratio financed by a 21-year limited-recourse loan package arranged by Arab Malaysian Merchant Bank Bhd and Bank Bumiputra Malaysia Bhd. Initially, Powertek planned to upgrade the plant to a 680-MW combined-cycle plant at an expected cost of $240 million. The expansion was cancelled when in early 1999 Powertek purchased the 330 MW Tanjung Kling power plant from TNB at a cost of US$195 million (and a 28% equity stake in Powertek for TNB). This was seen as a more cost effective means of expanding capacity than the TGPS1 expansion. On March 2nd 2012, the state-owned 1Malaysia Development Berhad (1MDB) acquired Tanjong Energy Holdings Sdn Bhd (TEHSB) for RM8.5 billion (US$2,820 million). Tanjong Energy owns equity in 13 IPPs internationally. Tanjong Energy fully acquired Poertek Berhad in April 2003. www.powertek.com.my 6/20/2006 Removed some incorrect statements, there appears to have been some confusion about contracts between the different Powertek plants. http://www.1mdb.com.my/news-1/1mdb-seals-tanjong-energy-deal http://www.reuters.com/article/2012/03/07/1malaysia-tanjong-idUSL4E8E73OX20120307