Pestech to begin Laos-Thai power project by 2Q of 2013

by JF Thu 07 Mar 2013, 10:21

PETALING JAYA: Integrated electric power technology, infrastructure and solutions provider Pestech International Bhd will start construction of a 115kV power transmission infrastructure in Laos, connecting the country with Thailand, this year.
Executive director and CEO Paul Lim Pay Chuan (photo) said negotiations on the project is at an “advanced” stage and that he is confident that construction can begin in the second-quarter (2Q) of the year.
“We will sign a contract agreement with Electricite Du Laos (EDL) to commence building the infrastructure,” he told The Malaysian Reserve in a recent interview.
EDL is a state-owned corporation in Laos under the Ministry of Energy and Mines which owns and operates the country’s main generation, transmission and distribution assets.
The agency also manages electricity imports into its grids and exports from its stations.
Laos has a long-term power development plan spanning from 2012- 2020 and the government has set clear targets of achieving 70% electricity access by 2010 and 90% by 2020, according to EDL’s website.
According to World Bank Group 2012 report, the country’s installed capacity is expected to reach 3,000MW by 2013.
Lim said the power purchase agreement between the two countries has already been signed which outlines the increased capacity of power required by Thailand.
“We have already identified the exact route for the transmission line, which is about 50km and we have also concluded our survey and identified the land for the Laos government to acquire.
“The project will involve extension of the existing substations, increasing capacity and construction of the transmission line and two substations, which goes all the way to the Thai border and Thai-based power contractors will take over from there on,” he said.
Once completed, the transmission line and power infrastructure will supply up to 200MW of power, on top of the existing 50MW, which is expected to contribute positively to the company’s revenue in 2014 and 2015, Lim said.
Pestech and its Laos-based joint-venture (JV) partner VLV Soumpholphakdy Sole Ltd, inked a memorandum of understanding (MoU) with EDL in September last year, to conduct feasibility studies of the 115kV power transmission line from Pakse, Laos to Laos-Thai border.
The project connects power supply from hydro plants located in Saravanh, a southern province of Laos to Thailand.
Through the MoU, EDL grants the JV companies the sole mandate to carry out all activities relevant to the feasibility studies and carry out the design, manufacturing, shop test and the delivery of the equipment and installation, construction and commissioning of the transmission line on an engineering, procurement and commissioning basis.
Pestech is principally engaged in the provision of comprehensive power system engineering and technical solution for the design, procurement and installation of high voltage (HV) and extra high voltage (EHV) substations, transmission lines and underground cables.
The company will also focus on assembly and manufacturing of power and control products used in the transmission and distribution of electricity.
On the domestic front, Lim said the company is currently constructing the Murun Junction substation for Sarawak Energy Bhd, which is the feedin substation for the Murun Dam. The RM92 million project, which was secured in early 2012, is expected to be completed in the 2Q14.
Lim said Sarawak, which is moving towards a 500kV backbone, has quite a number of projects in the pipeline, which includes a plan to have power transmission to Kalimantan, in which the company has also participated in the tender process.
Total tender pipeline for Pestech as of Jan 31 this year stands at RM880 million, with roughly RM180 million worth of bidding tenders in Sarawak alone.