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           Bank Press Release No. 74/66               Subject:      $45 million loan for
           July 9, 1974                                             electic power in Malaysia


                    The World Bank has approved a loan of $45 million for an electric
           power project in Malaysia.
                    Demand for electric power in Malaysia has been growing on the average
           by about 14% a year over the last 10 years.           Industry and mining were the
           largest users in 1973, followed by commercial and residential demand.                The
           National Electricity Board of the States of Malaysia (NEB), an autonomous
           government-owned agency, has prepared a $730 million plan to meet the growth
           in demand through 1.980.    The project being assisted by the Bank loan is part
            of this expansion program.
                    The project will help to transmit the power output of the Temengor



•          Hydroelectric Scheme on the upper Perak. River to the major load centers of
           NEB' s interconnected network..   About 132. 5 mi.les of 275 kV lines and associated
           sub-stations will be built to link up Temengor with NEB's system at Papan and
           extend the main system southward from Port Dickson.             The project also includes
            the extension of the associated transmission. and distribution system, the
           establishment of a control and load dispatching center and provision of consult-
           ing services.
                    The project is scheduled for completion in 1979 at a total estimated
            cost of $68.5 million.     The Bank loan will meet the foreign exchange costs.
            Implementation of the project will be the responsibility of NEB.             This is the
           sixth loan from the Bank to NEB.      Five previous loans totaling $139.7 million
           have helped to finance about 1,010 MW of generating plant additions and
            associated transmission lines.
                    The Bank loan to NEB will bear interest at 7~% per annum and will be
            guaranteed by the Government of Malaysia.         It will be for a term of 20 years,
            including 5 years of grace •




•           Note:   Money figures are expressed in US dollar equivalents.


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                                                           July 9, 1974
                               TECHNICAL DATA


PROJECT:           Electric Power

COUNTRY:           Malaysia

TOTAL COST:        $68. 5 million

BANK FINANCING: $45 million, 20 years including 5 years of grace with
       interest at 7~% per annum ..

OTHER FINANCING:    National Electricity Board of the States of Malaysia (NEB)

IMPLEMENTING ORGANIZATION:    National Electricity Board of the States of
       Malaysia, Malaysia

PROJECT DESCRIPTION: Project consists of the construction and installation
       of about 132.5 miles of 275 kV lines and associated sub-stations to
       link up the Temengor Hydroelectric Scheme with NEB' s system at Papan
       and to extend the main system southward from Port Dickson to Malacca;
       extension of the associated transmission and distribution system at
       lower voltages than 275 kV; establishment of a control and load
       dispatching center; and consulting services.

PROCUREMENT: International competitive bidding in accordance with the Bank's     •
       "Guidelines for Procurement" except for protection equipment. Local
       manufacturers will be allowed a margin of preference of 15% or the
       actual customs duty, whichever is lower.

CONSULTANTS: Preece, Cardew and Rider (U. K.) will be responsible for the
       preparation of bidding documents and supervision of construction.

ESTIMATED COMPLETION DATE:     1979.




Note:   Money figures are expressed in US dollar equivalents


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