Malaysia to export power to Indonesia: Report

Malaysia's state-owned power utility Tenaga Nasional Bhd. plans to start laying submarine cables by the end of this year to export power to neighboring Indonesia, by 2008, a news report said Saturday.

The project is estimated to cost some 1 billion ringgit (US$2.66 million), to be shared by Tenaga and its Indonesian counterpart Perusahaan Listrik Negara, the New Straits Times newspaper reported.

The cables would cover a distance of 29 miles across the Malacca Strait, between peninsular Malaysia and Sumatra, the report said.

The feasibility study has been completed, the paper quoted Tenaga Chief Executive Che Khalib Mohamad Noh as saying. "We are in the midst of shortlisting financial and legal advisers," Che Khalib said.

Tenaga is seeking ways to raise sales to reduce its debts, totaling 29.9 billion ringgit ($7.9 billion). The company already exports power to another neighboring country, Thailand. (*)