By Sharen Kaur
Published in NST on May 18 2011
Construction outfit Bina Puri Holdings Bhd expects to secure mini hydro-power plant projects in Indonesia, amid rising demand for electricity as massive developments are carried out in the country.
Group managing director Tan Sri Tee Hock Seng said for a start, the company is eyeing smaller projects, costing between US$2 million and US$10 million (RM6 million and RM30.5 million) and generating 2 to 5 megawatt (MW) power.
Tee sees Indonesia, which is experiencing phenomenal growth, as a good market for the company.
"We are looking at a few areas and in talks with the relevant government agencies.
"We are targeting projects with 20 to 25 years' concession," he said in an interview with Business Times recently.
Tee said besides hydro-power plants, Bina Puri is hoping for more diesel-powered plant projects.
The company has secured four contracts to build and operate diesel-powered plants from PT Perbadanan Listrik Negara (PLN), a government agency that operates similarly to Tenaga Nasional Bhd.
This is via its unit Bina Puri Mining Ventures Sdn Bhd, which holds a 80 per cent stake in power plant owner and operator PT Megapower Makmur.
Bina Puri bought Megapower in August last year for RM807,581 to expand its exposure to electricity-generation projects overseas, in a move to establish a larger recurring income base.
Since it bought the stake, Megapower has built and started to operate three of the diesel-powered plants, with a total output capacity of 2MW each.
Tee said the company holds a five-year concession to sell electricity to PLN at 10 sen per kilowatt.
The fourth plant is under construction and will start operation from July, he said, adding that Bina Puri is negotiating a fifth contract with PLN.
Tee also said that Bina Puri hopes to recoup its investments in each of the plants in less than three years.
"We expect the power business to contribute 20 to 30 per cent to our group net profit in the current year," he said.
Last year, contribution from power was less than 1 per cent, recording RM88,000 net profit on revenue of RM1.6 million as the business started only in the fourth quarter of 2010.
Tee said locally, Bina Puri will continue to focus on construction, its bread and butter.
"Power projects in Malaysia are too costly to do. We prefer smaller projects," he added.
-ENDS-
Published in NST on May 18 2011
Construction outfit Bina Puri Holdings Bhd expects to secure mini hydro-power plant projects in Indonesia, amid rising demand for electricity as massive developments are carried out in the country.
Group managing director Tan Sri Tee Hock Seng said for a start, the company is eyeing smaller projects, costing between US$2 million and US$10 million (RM6 million and RM30.5 million) and generating 2 to 5 megawatt (MW) power.
Tee sees Indonesia, which is experiencing phenomenal growth, as a good market for the company.
"We are looking at a few areas and in talks with the relevant government agencies.
"We are targeting projects with 20 to 25 years' concession," he said in an interview with Business Times recently.
Tee said besides hydro-power plants, Bina Puri is hoping for more diesel-powered plant projects.
The company has secured four contracts to build and operate diesel-powered plants from PT Perbadanan Listrik Negara (PLN), a government agency that operates similarly to Tenaga Nasional Bhd.
This is via its unit Bina Puri Mining Ventures Sdn Bhd, which holds a 80 per cent stake in power plant owner and operator PT Megapower Makmur.
Bina Puri bought Megapower in August last year for RM807,581 to expand its exposure to electricity-generation projects overseas, in a move to establish a larger recurring income base.
Since it bought the stake, Megapower has built and started to operate three of the diesel-powered plants, with a total output capacity of 2MW each.
Tee said the company holds a five-year concession to sell electricity to PLN at 10 sen per kilowatt.
The fourth plant is under construction and will start operation from July, he said, adding that Bina Puri is negotiating a fifth contract with PLN.
Tee also said that Bina Puri hopes to recoup its investments in each of the plants in less than three years.
"We expect the power business to contribute 20 to 30 per cent to our group net profit in the current year," he said.
Last year, contribution from power was less than 1 per cent, recording RM88,000 net profit on revenue of RM1.6 million as the business started only in the fourth quarter of 2010.
Tee said locally, Bina Puri will continue to focus on construction, its bread and butter.
"Power projects in Malaysia are too costly to do. We prefer smaller projects," he added.
-ENDS-
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