Zelan Gets RM2b Indonesia Job

Zelan Gets RM2b Indonesia Job

KUALA LUMPUR: A consortium led by Zelan Bhd has clinched a US$560mil (RM2bil) engineering, procurement, construction and commissioning (EPCC) contract for a new power plant in Indonesia.

The work, expected to last 33 months, is for a two 300-MW coal-fired turbines in Rembang, Central Java.

Zelan has a 70% stake in the venture with the balance 30% held by Indonesian conglomerate PT Priamanaya Djan International. The consortium was notified of the award by Indonesia's PT PLN Persero on Wednesday.

"The Zelan-led consortium was the only Malaysian group selected for the international EPCC competitive bidding tender for PT PLN's power plants to be built on Java Island as part of its 10,000-MW accelerated programme.

"The Rembang power plant is part of this scheme," group chief operating officer Khoo Boo Seong said in a statement yesterday. He said one of the integral requirements of the tender was for participating consortiums to offer financing.

"We have submitted an innovative financing solution to PT PLN as part of the buyer's credit," he added.

Khoo said the project was the largest single contract won by the group. Before this, its single largest contract was the RM1.3bil Tanjung Bin 2,100-MW coal-fired power plant.

The latest contract takes Zelan's order book to about RM5bil.

The company expects the Rembang project to place the group on a positive footing for securing other power plant projects that the Indonesian government has committed to build.

Zelan, recognised as an EPCC specialist for power plants and infrastructure projects, has been actively pursuing opportunities in the Middle East, India and Indonesia over the past three years.

Earlier this month, the company secured a contract worth RM938mil for the Shuqaiq independent water and power plant in Saudi Arabia.