5 - Lahad Datu Power Plant (300MW)

EPP 5 : LAHAD DATU POWER PLANT (300MW)

The fuel for the power plant will be LNG

The power plant and LNG re-gasification plant are to be built in POIC Lahad Datu Phase 3

 
   

Key outcomes of the EPP / KPIs
Creation of 390 jobs for Sabahan from top management to supporting staff during operations and 2737 jobs during construction. Hence, transfer of technology
and knowledge will take place to local manpower and contractors
Additional 300 MW of cleaner and stable energy supply into SESB to preserve Sabah eco treasure
Reduce the yearly lost from industrial losses RM4.59billion/per year due to power interruption

Key Challenges
POIC policy not to sell sea front land and project owner plan to purchase the land for jetty and port to lower the project cost and ensure the security of long term
investment
POIC policy for them to build and operate the jetty vs project owner plan to self build and self operate the jetty to reduce cost
Lengthy negotiation period on Power Purchase Agreement (PPA)
Shortage of capable manpower and local contractors

What needs to be done?
Project consortium needs to Resolve land purchase/lease matters by Dec 2011
Resolve jetty building and ownership matters between
project consortium and POIC / Sabah Authorities by Dec
2011
Project consortium needs to start the land works latest
by Q1 2012
MLNG needs to secure the LNG import supplies from
international market by 2014

Mitigation Plan
Work on the agreed price for both parties whether on selling/purchasing or leasing the land
Speed up state government decision on the ownership of the jetty
Intervention from MPRC, state government into the negotiation of PPA to speed up the decision
Proper education planning to prepare and develop the skilled and semi skilled manpower

 

 Edited on Saturday November 30, 2013 03:19:45 PM  by Michael

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