Tenaga To Buy Kulim Power Plant For RM1b - Business Times

06/07/2005

The business sections of all major dailies carried reports of Tenaga’s announcement that it will spend RM1 billion to take over the power business of insolvent companies that supply electricity to the Kulim Hi Tech Park in Kedah. Tenaga is buying assets of Northern Utility Resources Sdn Bhd, NUR Generation Sdn Bhd and NUR Distribution Sdn Bhd. The firms are building a 220MW gas-fired plant together with transmission and distribution facilities. The proposal drew criticisms from analysts although they acknowledge that buying the power plant could benefit Tenaga in the long run. The deal would also ensure electricity supply to the industrial park and Tenaga is banking on further development at the park to spur demand for the power plant. Tenaga also is looking at selling electricity to Thailand. Analysts said the deal could also be a catalyst for Tenaga getting a much needed power price increase.