MeNA to arrange $5b for power project in Indonesia, Malaysia

Dubai-based financial institution MeNA Financial Group Limited (MeNA)will arrange US$5 billion in financing for Malaysian firm Transpower Energy Ventures Sdn Bhd (TEV)to develop power projects in Indonesia and Malaysia.

MeNa said in statement on Sunday it would act as the main arranger and structuring adviser for the the capital raising effort.

The project includes the development of a 3,000 MW mine-mouth power plant in Indonesia, 500kV tansmission line from Yong Peng to Kapar in Malaysia and other associated works, it said.

Jungwoo Construction Company Limited and Korea Electrical Power Corporation from South Korea will be involved in the construction and the operation of the power plant respectively.

Earlier, TEV proposed the power plant be built in Peranap, in Indragiri Hulu regency, Riau province to generate 3,000 MW of electricity that will be delivered to Malacca, Malaysia through a submarine cable.

TEV Chairman Tan Sri Norian Mai said the plant was expected to start transmitting electricity to Malaysia in 2016 when the country's power demand is seen to increase while the country's oil reserves to deplete. ?Agreed to in principle by the Malaysian and Indonesian governments, the power plant will supply electricity to (Malaysian electricity firm) Tenaga Nasional Bhd (TNB) to be connected to the national grid,? he said in May 2008.(*)