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·eNorld Bank
    1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360



                 Bank News Release No. 75/96                                      December 4, 1975



                          MALAYSIA RECEIVES $35 MILLION LOAN FOR POWER DEVELOPMENT

                      The National Electricity Board of the States of Malaya (NEB) will
                 receive a loan of $35 million from the World Bank for a power project.
                 It is the seventh power project the World Bank is helping to finance in
                 Malaysia.

                      The loan, announced today, will assist the long-range program of
                 NEB's sy~tem expansion. Total cost of the project will be about
                 $171 mil.lion.

                      The project consists of the final extension of the Prai Thermal
                 Power Station (3 x 120 MW), construction of a 132 kilovolt (kV) trans-
                 mission line from Majadee switching station to Kota Tinggi, and exten-



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                 sion of the 11 kV distribution system to two rural areas. These facilities
                 are to be cormnissioned between 1978 and 1980.

                      The project also provides for consulting services for a rural elec-
                 trification study and other assistance.

                      Since 1958, NEB has received six previous World Bank loans for power
                 totaling about $181 million (net of cancellations), which are helping to
                 finance an increase of about 1,000 MW in generating capacity and associated
                 transmission facilities.

                      NEB's total generating capacity of 860 MW consists of about 265 MW of
                 hydroelectric plant, 540 MW of steam plant, and 55 MW of diesel plant.
                 NEB's interconnected system covers most of the western side of Peninsular
                 Malaysia. Links to Kuantan, Kata Bahru and Kuala Trengganu on the east
                 coast will be completed between 1975 and 1980, when the entire peninsula
                 will be interconnected.

                      The $35 million loan is for 20 years, including five years of grace,
                 with interest at 8-1/2% per annum.




                 Note:    Money figures are expressed in US dollar equivalents .



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                                T E CHNI CAL         DA T A




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   PROJECT:                       Seventh Power
   COUNTRY:                       Malaysia
   TOTAL COST:                    $171. 3 million
   BA}Il{ FIN&~CING:
                                  $35 million for 20 years, including 5 years of grace,
                                  with interest at 8-1/2% per annum



   OTHER FINANCING:               National Electricity Board (NEB) and bilateral
                                  or suppliers' credits to be arranged by the
                                  Malaysian Government


   DfPLEMENTING ORGANIZATION:     National Electricity Board
                                  129, Jalan Bangsar
                                  Kuala Lumpur, Malaysia

   PROJECT DESCRIPTION:
                                  The project consists of: (a) the final extension of




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                                  the Prai Thermal Power Station, comprising 3 units of
   120 megaw·atts (MW) each, scheduled for service in August 1979, February 1980, and
   August 1980 respectively; (b) installation of a 132 kilovolt (kV) transmission line
   from ~ajadee switching station to Kota Tinggi, scheduled for service in 1978;
   (c) extension of the 11 kV distribution system to 2 rural areas, scheduled for ser-
   vice in 1978; and (d) consulting services for a rural electrification study and
   other services.

   PROCUREMENT:
                                International conpetitive bidding in accordance with
                                Bank guidelines. L~cal manufacturers will be allowed
  a margin of preference of 15% or the actual custons duty, whichever is lower.


  CO~SULTA:t-;~S:               A local firm, Malaysia International Consultants
                                 (MINCO), has been engaged by NEB to provide engineer-
  ing services on detailed investigation, design and construction supervision for civil
  works of Prai Thermal Power Station Extension Project. Preece, Cardew and Rider (PCR)
  of London has been retained by NEB to furnish back-up consultancy services during the
  design stage, including the review of bidding documents and engineering designs, and to
  provide overall supervision during construction through th appointment of a senior
  resident engineer.




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  INTEP~~AL RATE OF RETURN:      11% for Prai extension


  ESTIMATED COMPLETION DATE:     December 31, 1980

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