GB Asiatic, China Machinery plan coal, power plant projects in Sumatra

GB Asiatic Ventures Sdn Bhd has partnered with China Machinery Engineering Corp (CMEC) to sign two memorandums of developments with AJ Pharma Holding Sdn Bhd and PT Sriwijaya Utama Energy to undertake projects including coal-fired power plants worth RM9.2 billion, a report said.

GB Asiatic's Chief Executive Officer, Datuk Wong Kong Choong, was quoted by Bernama.com as saying Monday the projects involved building the world's first halal vaccine and pharmaceutical plant for AJ Pharma with gross development value (GDV) of RM330 million in Bandar Enstek, Negeri Sembilan and two coal-fired power plants in south Sumatra, Indonesia with PT Sriwijaya worth around RM8.82 billion.

CMEC, one of the top ten infrastructure contractors in the world, is China's state-owned company. It has exclusive strategic partnership with GB Asiatic in bringing into Malaysia and Asia-Pacific world infrastructure, construction technology with financing of up to 85 per cent on gross development cost.

Wong said the projects would commence in the first quarter of 2016 and they would add to the RM7.6 billion project announced by the company earlier which would start work next year, including an airport in Indonesia and some other local projects.

He said this to reporters after the signing of four agreements with the various partners here Monday.

The event also saw GB and CMEC signing a memorandum of agreement with PT Sriwijaya Prima Energi for coal mining project in south Sumatra to supply the coal for its power plant and for export in the region.(*)