Gadang in talks to build Viet power plant

 

GADANG Holdings Bhd, a construction and property firm, is in talks to build a coal-fired power plant in Vietnam.

The company, which may build a RM300 million water treatment plant in Vietnam, is due to carry out a detailed study on the power plant project.

Gadang managing director and chief executive officer Tan Sri Kok Onn declined to provide details, but said it was still finalising the nitty-gritty with relevant government departments.

"We have been exploring Vietnam and studying the market for two years, and finally won the bid to build the treatment plant.

"We are expanding the company's utilities division by looking for more jobs to build power plants and to hold water concessions," Kok told Business Times in an interview.

Gadang wants its utilities division to contribute 25 per cent of profit by 2011, from five per cent at present.

It plans to achieve the target by buying new water supply concessions and building power plants in Vietnam and Indonesia.

To date, it holds four water supply concessions in Indonesia.

In the year ended May 31 2008, Gadang made net profit of RM7.5 million on revenue of RM172 million.

The water project is the first job for Gadang in Vietnam and will be implemented on a build, operate and transfer basis by its indirect wholly-owned unit, Green Water Investment Pte Ltd, in Long An Province.

Green Water is expected to hold a 30-year concession for the plant.

It has signed a memorandum of understanding with the Long An Province Department of Planning and Investment, Long An Province People's Committee, to undertake a 12-month study before building the plant.

"We expect to complete the study in four to six months so we can begin work by mid-2009 to supply to the 1.5 million population of Long An Province," Kok said.

The plant, which will have the capacity to produce up to 300,000 cu m of water a day, will be built within 30 months using internal funds and loans.

"We have been investing in many countries, but are glad to be in Vietnam as it has a lot of resources. Long An is a fast- developing industrial province. A lot of industries from Ho Chi Minh City are expected to relocate there, hence, the urgent need for fresh water," Kok added.