Malaysian state power utility Tenaga Nasional Bhd (TNB) has awarded the engineering, procurement and construction (EPC) contract worth RM 1.3 billion (US$343 million) for the redevelopment of the Tuank Jaafar Power Station in Port Dickson to a Japanese-led consortium.


The contract was awarded to a consortium comprising Sumitomo Corp and Toshiba Corp, General Electric Co (GE), General Electric Power System Inc (GEPSI) and General Electric Power System (M) Sdn Bhd (GEPSM).


The re-development of the power station into a 750-megawatt combined-cycle dual-fuel (gas/distillates) power plant will cost TNB about RM1.7bil (US$449 million), according to a report in The Star newspaper.


The contract is for the supply and construction of a combined cycle power plant incorporating environmentally clean and high-efficiency technology.


The remaining RM400 million is for supporting works such as cabling and transmission lines, which was being negotiated with local contractors and should be finalized by May, said TNB president and chief executive officer Khalib Mohamad Noh.


Mr Khalib did not expect any major re-development works at any of TNB’s other power plants.


We are not looking at upgrading, but at some maintenance works involving the Paka and Connaught Bridge power plants. These plants are more than 22 years old,” he told reporters after the signing of the EPC contract in Kuala Lumpur yesterday.


We are working to extend the life span of these two plants,” Mr Khalib said.


GE will supply the gas turbines, and Toshiba the steam turbines.


TNB is expected to finance 75% of the project with loans from the Japan Bank for International Cooperation.


The 600MW Tuanku Jaafar power station comprises conventional oil-fired and oil/gas-fired thermal plants that are deemed not cost effective at present. The gas-fired plant, with a new capacity of 750MW by 2008, will be able to power up more than 750,000 homes.


TNB will also source power from plants that are being built, mainly Jimah (1,400MW) and Tanjung Bin (2,100 MW). The company has more than 10 generating plants, with total capacity of about 12,000MW.