Zelan Bids For Indon, Botswana Projects

Zelan Bids For Indon, Botswana Projects

KUALA LUMPUR: Zelan Bhd is bidding to build new power plants in Indonesia and Botswana, which would have a combined power generation capacity of 1,800 megawatts (MW), chief executive officer Albert Chang said.

The company has started work on the RM2.1bil two 300-MW coal-fired turbines in Rembang, Indonesia, after the project was awarded to Zelan and its Indonesian partner.

"We have submitted another bid to build a 600-MV power plant in Tanjung Jati, also in Java," Chang told a press conference yesterday.

"The project is estimated to be worth RM2bil.

Chang said the company viewed Indonesia as an exciting market for power plants with at least 10 new plants with a combined capacity of 7,000 MW to be built in Java this year. Five of the projects, including the one in Rembang, were awarded in March.

Indonesia is also planning 25 new power plants outside Java this year, with total capacity of about 10,000 MW.

Zelan also has been invited to submit a bid for a power plant project in Botswana. The plant will have a power production capacity of 1,200 MW.

It is likely to partner Dongfang Electric Corp, China's third largest power equipment maker, for the venture.

Zelan also announced yesterday it had awarded a contract worth RM770mil to Dongfang for the supply of boilers, turbines and generators to the Rembang project.

The Rembang plant is scheduled to start operations by late 2009.

Apart from Indonesia, Zelan is also building a power plant in India and doing infrastructure works in Saudi Arabia.

Overseas projects account for 80% of its current order book of RM5bil.

In another development, Zelan announced a plan to split its stock by subdividing each existing RM1 share into two 50 sen shares at a date to be determined later.

Zelan shares were down 20 sen at RM11.20 yesterday.