DL E&C

Daelim Wins KRW 1.3 trillion Coal-Fired Power Plant Project from Malaysia

Daelim announced on August 22, 2013 that it signed a contract to build the USD 1.153 billion (KW 1.3 trillion including Daelim Malaysia subsidiary’s stake) Fast Track Project 3A Coal-Fired Power Plant at the TNB (Tenega Nasional Berhad) head office in Kuala Lumpur, Malaysia. Daelim President Lee Chul-gyun as well as the client’s officials attended the contract signing ceremony. This private sector-funded power generation project was ordered by EC (Energy Commission of Malaysia), with TNP implementing the project as the developer.

Daelim is fostering the energy and power generation business as a future growth engine. It was assessed by the client to have optimal engineering/design from the aspect of initial investment and maintenance/repair. This project is carried out in EPC LSTK (lump sum turnkey) mode, with Daelim responsible for engineering/design, equipment and materials procurement, and construction. Daelim will construct one large-scale 1,000MW coal-fired power plant in the Manjung area, about 288km northwest from Kuala Lumpur. Construction is expected to take about 45 months, with the project slated to be completed in October 2017.

TNB, which is supervising the project, is a national power company in charge of 55% of the total power supply in Malaysia. Through this project, Daelim plans to boost cooperative relations with TNB and EC. The company is expected to secure a favorable position in the Malaysian market, where continual power plant projects are forecast owing to the rapid increase in power demand.

Daelim is making its presence felt in the Southeast Asian power generation market with its successful bid for this project, which comes close to the heels of winning the USD 1.2 billion Thai Binh 2, Coal Fired Power Plant, Vietnam’s largest, last year. It is currently undertaking the construction of 4 power plants (USD 2 billion) in Vietnam and the Philippines. The company plans to expand its power plant business actively in Southeast Asia, where power demand is soaring nowadays.

Daelim has carried out various types of construction, such as civil engineering, architecture, petrochemical, and power plants, since it entered the Malaysia market, starting with the expansion construction of the Port of Sibu in 1974. Having withdrawn from Malaysia because of the foreign currency crisis in 2000, Daelim returns to the Malaysian market 13 years later by winning this project.