Island Power proceeds construction of S$1.2bln power plant

Work on 800MW plant has started while SP PowerAssets will build interconnection to enable Island Power to export power to the Transmission Network.

Island Power Company Pte. Ltd. (“Island Power”) is now one step closer to its vision of becoming a competitive energy provider in Singapore. It has started work on linking its upcoming power plant to the electricity transmission network, according to an Island Power report.

Island Power has issued a Notice to Proceed (“NTP”) to SP PowerAssets Pte Ltd (“SPPA”) to construct the electrical interconnection that will enable Island Power to export power to the high voltage transmission network on Jurong Island. NTP was given under the terms of the Generation Connection Agreement (“GCA”) signed with SPPA in 2005.

Last month, Island Power also started initial site works under the engineering, procurement and construction (“EPC”) contract with Siemens AG, Siemens Pte Ltd and Samsung C & T Corporation signed on 27th August 2010.

This will enable construction of its two 400MW generating units to commence in 2011 as scheduled. The total project cost is estimated at S$1.2 billion.

“The commencement of initial site works as well as issuing NTP to SPPA is a clear demonstration of our commitment to the Island Power project. We are on track to commence operations of the two units by 2013.” said Ng Quek Peng, Head of South East Asia, GMR Infrastructure (Singapore) Pte Ltd. Island Power is a wholly owned subsidiary of GMR Infrastructure (Singapore) Pte Ltd.

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