Leader eyes second Cambodia power plant

via CAAI News Media

From Marina Emmanuel

Published: 2010/02/12

SIHANOUK VILLE: Leader Universal Holdings Bhd may build a second power plant in Cambodia after it completes the country's first coal-fired plant in 2012.

The Penang-based company, which yesterday broke ground for the construction of its 100-megawatt (MW) coal-fired power project in Sihanouk Ville in southern Cambodia, is eyeing a 700MW facility, managing director and chief executive officer Datuk Sean H'ng Chun Hsiang said yesterday.

"Our plan hinges on demand for power and we are currently in talks for this with our joint venture partner," he told Malaysian reporters after the signing ceremony for a US$140 million (RM479 million) syndicated loan for the first coal-fired plant.

The event, witnessed by Cambodia's Deputy Prime Minister Keat Chhon and its Minister of Industry, Mines and Energy Suy Sem, is a 80:20 joint-venture project between Leader and Cambodia International Investment Development Group Co Ltd (CIIDG).

CIIDG is a group of Cambodian individuals.

Also present were Leader's chairman Tan Sri Razali Ismail and deputy executive chairman Datuk Seri H'ng Bok San.

The group's wholly-owned unit Leader Infrastructure (Labuan) Ltd has secured a US$140 million syndicated term-loan from a group of lenders, led by OCBC Bank (Malaysia) Bhd.

OCBC is the sole bookrunner and joint mandated lead arranger with Malayan Banking Bhd. Ambank (M) Bhd and Bank of China are the joint-lead managers.

"We are pleased to be able to once again lead-arrange a landmark cross-border transaction for a Malaysian corporate with an innovative and cost-efficient project financing and is well participated by renowned regional banking group," OCBC Bank's head of investment banking Tan Ai Chin said after the signing ceremony.

Meanwhile, H'ng said the coal-fired electric power plant project in Sihanouk Ville is estimated to cost US$170 million (RM581 million).

"The introduction of a coal power plant technology currently is timely," he added, saying that coal prices are normally lower than oil prices, which means it could translate into a lower tariff for the Cambodian people.

Leader's presence in Cambodia dates to 1995 when it developed its first independent power producer project in Phnom Penh.

Last month, it inked a deal for a build-own-transfer power transmission project with state-owned power company Electricite du Cambodge (EDC). Under that deal, Leader will build a 230Kv power transmission system from north Phnom Penh to Kampung Cham.

Leader will manage and maintain the transmission line for 25 years before returning it to the government.