PLN?s power shortage may speed up talks on undersea cable: Report

Malaysia's state-owned power utility firm Tenaga Nasional Bhd (TNB) said Monday that it might accelerate discussions with state utility company PT Perusahaan Listrik Negara (PLN) on the construction of an undersea cable linking the two countries.

A TNB official told StarBiz yesterday that negotiations on the 56km cable had been going on for about a decade, but PLN's ?financial constraints? had stalled talks. The power shortage affecting the consumer segment, however, could see the need to speed up negotiations, the official said.

?We have excess electricity in Peninsular Malaysia and we can supply power to our neighbours. Besides the power deficiency in Sumatra, there is also the bigger picture of the Indonesian government trying to encourage more foreign investments into the country,? he said.

On who would build the undersea cable, the official said: ?It could be a joint venture but nothing has been finalised yet.?

On January report said that the project is estimated to cost some 1 billion ringgit (US$2.66 million) and the undersea cables would cover a distance of 29 miles across the Malacca Strait, between peninsular Malaysia and Sumatra, the report said. (*)