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Malaysia's Tenaga awards plant contract to China's CNEEC

by Staff Writers
Kuala Lumpur (AFP) Feb 20, 2008
Malaysian utility giant Tenaga said Wednesday it had awarded the contract to build a coal-fired power plant on Borneo island to China National Electric Equipment Corporation (CNEEC).

Tenaga said the 300MW Lahad Datu plant in Sabah state, which lies on Malaysia's half of Borneo, would use "state-of-the-art clean coal technologies" and comply with World Bank environmental standards.

Tenaga chairman Leo Moggie said the deal could be the first of many between China and Malaysia in the power industry.

The two sides would "work together so that the ultimate objective of supplying sustainable and reliable power to the people of Sabah is achieved," he said in a statement.

Tenaga said the project was also designed to cater for power needs generated by the government's development blueprint for Sabah which was unveiled last month, with plans to bring in some 32.4 billion dollars in investment.

Sabah, Malaysia's largest state, is resource-rich but lags behind the rest of the nation in terms of development.

The economic masterplan is the fourth in a series of five designed to spur investment in Malaysia's regions.

Tenaga said the clean coal technology "drastically reduced" emissions of particulates, sulphur oxide gases and nitrogen oxide gases into the atmosphere.

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