Sesco, MPAS sign power purchase pact
Published on: Thursday, February 04, 2016
Kuching: Sarawak Energy Bhd (SEB), via wholly-owned unit, Syarikat SESCO Bhd, Wednesday formalised a power purchase agreement (PPA) with Malaysian Phosphate Additives (Sarawak) Sdn Bhd (MPAS) for the supply of 150 MV to power the latter's integrated phosphate complex, the first of its kind in South-East Asia.Sarawak Chief Minister, Tan Sri Adenan Satem, officiated the signing of the agreement between SESCO and MPAS.MPAS is a joint-venture company between Malaysian Phosphate Venture Sdn Bhd and Arif Enugma Sdn Bhd, an investment holding company.ADVERTISEMENT SEB Group Chief Executive Officer, Datuk Thorstein Dale Sjotveit, said MPAS's decision to set up the complex in Sarawak showed that SEB was on the right track to realising its aim of becoming the powerhouse for the Asean.He said with the boost in generation capacity and lower cost of electricity production from Murun and Bakun, Sarawak has been able to lower domestic, commercial and industrial tariffs and continue to attract large Sarawak Corridor Of Renewable Energy (SCORE) customers.Torstein said SEB has signed 14 agreements, representing a committed energy demand of over 3,000 MV, under this initial phase of SCORE."This monumental development, worth RM1.9 billion, will be the latest addition to Samalaju Industrial Park in Bintulu and further recognise the state as an ideal destination for investors given its ability to provide renewable, secure and affordable energy as well as business-friendly policies," he said.ADVERTISEMENT He said under SCORE, generating more energy was a priority for SEB as the state continued to industrialise."A ready supply of affordable electricity is essential to keep the state attractive and competitive to foreign and local investors for industrial development made available by SCORE," he said, adding that Sarawak has a strong advantage in pursing hydropower as a clean source of energy.
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Meanwhile, MPA Chairman, Datuk Syed Ahmad Alwee Alsree, said the plant, was scheduled to come online by 2018.Stay up-to-date by following Daily Express’s Telegram channel.
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He said complex will house nine different plants and would produce food phosphate, fertiliser phosphate and halal feed phosphate."The project will generate a gross national income contribution of RM11.8 billion to the Malaysian economy," he said. – Bernama