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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President & CEO: Masami Iijima), together with 1Malaysia Development Berhad ("1MDB") which is wholly owned by the Government of Malaysia, have jointly received the letter of award on 3rd June from the Energy Commission of Malaysia for the development of ultra super critical coal-fired power generation project located in Mukim Jimah in Negri Sembilan, Malaysia (the "Project"). The Project will be the first project for foreign investor to participate in power generation project in Malaysia as a result of international competitive bidding which was firstly introduced in Malaysia for Prai gas-fired IPP project in July, 2012.
The Project is to construct, own and operate a 2,000MW (1,000MW x 2 units) ultra super critical coal-fired power plant and sell electricity to national power utility, Tenaga Nasional Berhad under the Power Purchase Agreement with a 25-year term. The total project cost is expected to be approximately USD 3.3bil (YEN 330bil). Engaging EPC consortium which will comprise IHI Corporation, Toshiba Corporation, Hyundai Engineering Co., Ltd. and Hyundai Engineering & Construction Co., Ltd., the Project is introducing high efficiency ultra super critical technology utilizing major equipment supplied by Japanese manufacturers. It is expected to achieve commercial operation for 1st unit in November, 2018 and 2nd unit in May, 2019.
Mitsui will contribute to the development and operation of the Project by leveraging its expertise from its abundant experience in the overseas power business. The power generation projects is one of the primary focuses of Mitsui's infrastructure business. Mitsui will continuously aim for the development of good standing power generation projects across the world.
|Business Activity||Construction, Own and Operation of Power Plant (BOO)|
|Capacity||Ultra Super Critical (USC) coal-fired power generation 2,000MW (1,000MW x 2 units)|
|Offtaker||Tenaga Nasional Berhad (TNB)|
|Project Cost||Approximately USD 3.3 billion|
|Finance||Equity and limited recourse project finance|
|Schedule||2014 June : PPA, EPC Contract execution
2018 Nov : Commercial Operation of 1st Unit
2019 May : Commercial Operation of 2nd Unit
|Location||Mukim Jimah, Negri Sembilan, Malaysia|
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.