Jaks Resources, China Power In JV To Develop Power Plant

KUALA LUMPUR, July 6 (Bernama) -- Jaks Resources Bhd has signed a joint venture agreement (JV) with China Power Engineering Consulting Group Co Ltd to develop a 1,200 MW Thermal Power Plant in Hai Duong Province, Vietnam, worth RM7.05 billion or US$1.87 billion. The power plant is a 25-years build-operate-transfer contract. The project is Jaks's maiden foray into the power generation sector to generate stable and recurrent concession-type earnings in the longer term said Chief Executive Officer Andy Ang Lam Poah. "The project will be funded on an intended capital structure of approximately 75 per cent and 25 per cent equity. "The construction of the power plant, which will comprise two 600 MW generating units, is scheduled to begin in the first half of next year and commence commercial operations in 2020," he told reporters after a signing ceremony here Monday. Ang said once the project gets underway, Jaks would be able to recognise additional revenue in four years. Jaks, primarily engaged in the integrated water works industry, is also involved in the design and construction of sewerage treatment facilities, as well as, manufacturing of mild steel pipes and other steel products. -- BERNAMA