July 18, 2008

MMC Wins UAE Power Plant Deal

MMC Corp Bhd has won exclusive rights to build a power plant with a potential capacity of up to 1,000 megawatts in Ajman, the United Arab Emirates (UAE).

Its wholly-owned unit, MMC Utilities Ltd, signed a deal with the Ajman government in Dubai yesterday.

MMC Utilities will have the sole right to do technical and economical feasibility studies. Once the studies are approved, it could set up a concession company that will manage, operate and maintain the power plant for 20 years, MMC said in a statement yesterday.

The Ajman government will buy the electricity produced throughout the concession period, MMC said.

MMC International chief executive officer Feizal Ali said the project follows the company's achievements in power and water projects in Saudi Arabia, Oman, Jordan and Algeria.

"I'm optimistic that our cross-border investments, such as this power plant project in the UAE, will go a long way towards ensuring sustainable earnings for MMC for many years to come," he said.

MMC Utilities is focused on the utilities and logistics sectors. The company is actively bidding for projects in the Middle East.

MMC is the joint master developer of the US$30 billion (US$1 = RM3.23) Jazan Economic City in Saudi Arabia, with the Saudi Binladin Group.

MMC International has invested in a new container terminal at Jeddah Islamic Port, which comprises three berths with a capacity of 1.5 million TEUs (twenty-foot equivalent units).

MMC also has interests in the Shuaibah independent water and power plant project in Saudi Arabia, a desalination plant in Algeria, the Central Electricity Generation Co in Jordan and the Dhofar Power Co in Oman.

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