Three-Party Consortium To Build Undersea Cable From Borneo To Peninsular Malaysia

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by Jaxon S on January 22, 2009

in Borneo Development Issues

A three-party consortium will undertake the development of a RM7 billion (US$2 billion) submarine cable to carry 1,600 megawatt of power from Borneo to Peninsular Malaysia.

The three parties are Malaysia’s energy giant Tenaga Nasional Bhd, Sarawak state power firm Sarawak Energy Bhd and Ministry of Finance Inc.

The energy transmitted through the 679km long cable between Sarawak and Yong Peng in Johor, Peninsular Malaysia, will be from the Bakun Hydroelectric Power project in Sarawak.

Tenaga Nasional said in a filing to Bursa Malaysia yesterday that the on-land transmission systems for Peninsular Malaysia and Sarawak will be developed by Sarawak Energy and Tenaga Nasional respectively, according to a report by Bernama.

Greenlight to operate Bakun hydro power

Tenaga Nasional and Sarawak Energy have also received approval in principle from the government to take over the operation of the Bakun Hydroelectric Project.

The two companies will take over the operation from Sarawak Hidro Sdn Bhd through a leasing agreement and to develop the associated transmission system, which will see the export of 1,600 megawatt (MW) electricity from the Bakun project to Peninsular Malaysia.

The remaining power will be plugged into Sarawak’s power grid.

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