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Completed Mixed AidData Chinese Aid

CDB provides loan for Tanjung Kidurong Gas-fired Power Plant Project

$89M USD

Funder China Development Bank (CDB)
Recipient Organization SEB Power Sdn Bhd
Country Malaysia
Start Date Jan 01, 2019
End Date Feb 09, 2029
Duration 3,692 days
Number of Grantees 1
Roles Recipient
Data Source AidData Chinese Aid
Grant ID 92499
Grant Description

CDB provides loan for Tanjung Kidurong Gas-fired Power Plant Project In 2019, China Development Bank issued a loan to SEB Power Sdn Bhd — a wholly owned subsidiary of Sarawak Energy (the electric utility company of the Malaysian state of Sarawak) — for the 826MW Tanjung Kidurong Gas-fired Power Plant Project.

📋 Loan / Grant Terms
💰 Loan Amountare unknown

However, it is known that the borrower was expected to use the loan proceeds to partially finance a £195.37 million ($238.62 million or RM 1 billion) EPC contract between Sarawak Energy and a consortium (consisting of GE Power Solutions (Malaysia) Sdn Bhd, GE (Switzerland) GmbH, Sinohydro Corporation (M) Sdn Bhd, and Sinohydro Corporation Ltd), which was signed on October 28, 2016.

The purpose of the project is to construct one of two 421 MW power generation units at the 826 MW combined-cycle gas turbine (CCGT) power plant within the existing Tanjung Kidurong (Bintulu) power station, which is located approximately 6 km away from the Bintulu sea port, in the Kidurong Industrial Park, Bintulu province, Sarawak, Malaysia.

The exact locational coordinates of the power plant are 3.2899, 113.0942.

Each power generation unit (or ‘block’) will be equipped with a GE F-class gas turbine, a steam turbine, and a waste heat recovery boiler in a multi-shaft configuration that also enables open-cycle, as well as dual fuel operations.

Incorporating innovative twin combustor design that involves the environmental vortex (EV) as well as the sequential EV (SEV) combustors, the gas turbine features low exhaust emission and greater operating flexibility.

The project will utilize an integrated cooling water system comprising three 1.1km-long and 2.5diameter sub-sea, high-density polyethylene (HDPE) water intake and drainage pipes.

The electricity generated by the project will be evacuated into the grid through a 275kV power transmission line via a gas insulated substation (GIS).

GE Power Solutions (Malaysia) Sdn Bhd, GE (Switzerland) GmbH, Sinohydro Corporation (M) Sdn Bhd, and Sinohydro Corporation Ltd are the EPC contractors responsible for project implementation. Several subcontractors are also involved.

China’s Eight Bureau of Power Construction Hydropower and Hubei Engineering Company Construction Company were engaged for the construction works of the project. Vantage Steek Works and Kemuning Engineering were engaged for the supply, fabrication, and erection of steel structure.

Sarens was contracted for the equipment lifting and installation operations, while Flenco was subcontracted by GE Switzerland for the supply of auxiliary systems for unit one of the combined-cycle project.

KASI Malaysia was appointed by Sinohydro Corporation for the marine traffic risk analysis (MTRA) of the cooling water intake pipeline.

In April 2018, a social and environmental impact assessment (SEIA) was undertaken by Chemsain Consultant in line with the requirements of the Equator Principles risk management framework and in compliance with with national requirements as well as the Performance Standard of the International Finance Corporation (IFC).

Then, in May 2018, an Environmental and Social Due Diligence exercise was conducted by an international independent environmental and social consultant. Unit 1 construction started in November 2016. Its gas turbine was successfully ignited in November 2019.

Unit 1 was then connected to the grid on July 30, 2020 and was put into commercial operation on January 20, 2021 (11 days ahead of schedule).

📋 Staff Comments
  1. This project is also known as the Tanjung Kidurong Combine Cycle Power Plant Project. The Chinese project title is 马来西亚沙捞越州Kidurong燃气电站项目 or 马来西亚凯德隆火电站(Tanjung Kidurong Combined Cycle Power Plant)凯德隆电厂扩建项目 or 凯德隆火电项目.
  2. The precise date on which the CDB loan agreement was signed is unknown. The precise amount for the loan is also unknown. For the time being, AidData assumes that it took place during calendar year 2019 since the 2019 annual report of Sarawak Energy (https://www.sarawakenergy.com/assets/pdf/Sarawak-Energy-ASR2019_AR-Part.pdf) indicates that ‘our wholly-owned subsidiary SEB Power Sdn Bhd successfully secured its first Export Credit Agency financing for Block 1 of the Tanjung Kidurong Combined Cycle Power Plant.’ AidData estimates the loan amount to be 89 million EUR because China Development Bank's portfolio (https://www.yidaiyilu.gov.cn/p/260503.html) indicates that as of December 2020, the balance of the loan for this project was 89 million EUR.
  3. For the time being, AidData has coded the flow variable as an export buyer’s credit since the borrower refers to the financing that it secured as ‘export credit’ financing.
  4. For the purpose of financing, the 826MW Tanjung Kidurong Gas-fired Power Plant Project has been split into two lots: a £195.37 million ($238.62 million or RM 1 billion) commercial contract for the first (421 MW) power generation unit (‘Unit 1’), which was signed ini October 2016; and a £273 million ($364.41 million) commercial contract with the same consortium for the second (421 MW) power generation unit (‘Unit 2’). Further research will be necessary to determine if CDB or any other Chinese state-owned financiers support the construction of Unit 2.
📚 Sources & References
  • CDB Annual Report 2020
  • China Development Bank Annual Report 2020
  • Tanjung Kidurong Combined-Cycle Power Project
  • Tanjung Kidurong power station
  • Webinar Training: Risk Assessment of Power Projects
  • 中国电建马来西亚凯德隆400MW级燃气-蒸汽联合循环电站工程天然气调压计量站采购项目招标公告
  • GE
  • Sinohydro to build 400MW CCGT at Tanjung Kidurong power station in Malaysia
  • 中国电建凯德隆火电项目创造四项马来西亚国家纪录
  • 中国电建马来西亚凯德隆火电项目1号机组提前实现商业发电
  • GE and Sarawak Energy Sign Multiyear Deal in Malaysia for Tanjung Kidurong Power Station
  • Bintulu
  • 马来西亚凯德隆电站首机并网发电, 【建设公司】凯德隆项目举行500万工时无事故暨一期燃机首次点火庆典
  • 凯德隆火电项目获马来西亚政府MSOSH审计一级金奖
  • Sarawak Energy’s Gas Plant Project Breaks Four Engineering & Technical Records
  • ADVANCING SUSTAINABLE AND RENEWABLE HYDROPOWER
  • Delivering Sustainable Energy Sustainability Report 2018
  • Towards A Renewable and Sustainable Energy Future
  • RAM Ratings reaffirms AA1(s)/Stable rating of Sarawak Power Generation’s sukuk
  • LAPORAN KETUA AUDIT NEGARA 2019SIRI 2
  • Tanjung Kidurong - Malaysia
  • 马来西亚沙捞越州Kidurong燃气电站项目
  • ESIA Report Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees

SEB Power Sdn Bhd

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