KUALA LUMPUR: JAKS Resources Bhd has assured that the recent fluctuation in coal prices will not impact the profit from its power plant in Vietnam.
This was given that the coal prices were passing through to the off taker Vietnam Electricity, according to Jaks chief executive officer Andy Ang Lam Poah.
The coal supplied to JAKS Hai Duong power plant was entirely sourced locally to ensure a stable supply of coal for 25 years, Ang said in a statement today.
This was through the coal supply arrangement signed with Vietnam National Coal-Mineral Industries Group, commonly known as Vinacomin.
Meanwhile, Jaks said the 12th Malaysia Plan (12MP) would present ample opportunities for it to penetrate the Sabah market.
The optimism follows its unit JAKS Solar Power Sdn Bhd's partnership with Qhazanah Sabah Sdn Bhd.
Jaks said the strategic plans under the 12MP demonstrated potential business opportunities for the company to expand its footprint in Sabah and Sarawak.
The company said it remained optimistic on its future outlook with the prospect of replenishing its construction order book, particularly in building water treatment plants and sewage treatment, in addition to constructing highways.
Jaks Solar and Qazanah Sabah had on July 8 signed a Memorandum of Understanding to explore potential opportunities to develop solar power and hydro power plants in the state.
Jaks chief executive officer Andy Ang Lam Poah said the 12MP tabled on September 27 would benefit Sabah and Sarawak from the various initiatives planned, especially on improving the states' socioeconomic development to reduce the development gap with Peninsular Malaysia.
"Demand for electricity in Sabah continues to grow and the key issue is the lack of off-grid connectivity to meet the growing demand.
"The 12MP has highlighted the strategies to improve the electricity supply chain through the development of a new power plant and the upgrade of the Sabah East-West grid transmission line to fulfil the increasing demand of electricity," Ang said in a statement today.
He said cleaner electricity generation was highly encouraged through renewable energy power plants, such as solar and hydropower plants.
"Accordingly, the 12MP indicated that the installed capacity of renewable energy is targeted to reach 31 per cent of Malaysia's total energy capacity by 2025."
Under the 12MP, a significant portion of the development allocation expenditure of RM400 billion will be channelled towards the enhancement of infrastructure and basic facilities in Sabah and Sarawak.
The 1,150km Pan Borneo Highways are expected to continue in the 12MP.
The Sabah Pan Borneo Highway project is currently 56 per cent completed and is anticipated to complete by 2024, while the Sarawak Pan Borneo Highway is now 70 per cent completed with full completion targeted by 2022.
The government also aims to achieve a 98 per cent access rate for clean and safe water and 99 per cent accessibility for electricity supply within these states by 2025.
Jaks said statistics showed that Sabah's supply of electricity had achieved a coverage of 95 per cent, or 4.0 percentage points below its 2025 target coverage of 99 per cent.