ABB consortium awarded the Bakun project - largest hydro-electric power system in Malaysia

ABB to lead construction of US$ 5 billion, 2,400-megawatt plant and 1,300 km power transmission scheme - the largest project in ABB`s history

Zurich, Switzerland, June 17, 1996 - The Government of Malaysia announced on June 13, 1996, the Award to an international consortium led by ABB, the international electrical engineering company, to construct a 2,400-megawatt hydro-electric power generation plant and transmission system at Bakun on the Balui River in Sarawak. The project is valued at over US$ 5 billion, of which the major share would be carried out by ABB, and would be the largest single project ever handled by ABB. The Letter of Award is issued to the ABB consortium by Ekran Berhad, a publicly listed company who holds the rights from the Government of Malaysia to develop the project. Final signing of the order is scheduled to take place during the second half of this year, pending completion of project financing details. Construction will start by the end of 1996 and the hydro-electric project is scheduled to start delivering power by 2002.

As consortium leader, ABB will be responsible for the overall project management and will supply all electrical equipment for the project, including six 420-megawatt hydro-generators and a complete 500-kilovolt High-Voltage Direct Current (HVDC) transmission system to connect the power plant in Sarawak to the centers of population in Peninsular Malaysia - a total distance of over 1,300 km, of which half will be via three submarine cables under the South China Sea. ABB`s consortium partner for the civil works will be Companhia Brasileira de Projetos e Obras (CBPO) of Brazil, a large civil engineering company belonging to the Odebrecht Group, responsible for the construction of the dam and power house. In addition, substantial work will be carried out by Malaysian companies and other groups from Asia, Latin America and Europe. ABB has agreed to follow the Malaysian Government policy of transferring and sharing technology.

Percy Barnevik, Chairman of the Board and Chief Executive Officer of ABB, said: "Malaysia`s energy requirements are growing rapidly as the country`s manufacturing sector takes off and purchasing power rises. ABB is committed to supporting this positive development with the most advanced technology available for an important renewable energy source."

Goran Lindahl, head of ABB`s global Power Transmission and Distribution segment and member of the ABB Group Executive Committee, said: "This award is a recognition of ABB`s leadership in advanced power generation and transmission technology. The project will bring urgently needed power to both Peninsular Malaysia and Sarawak while cutting electricity losses by as much as half compared to conventional systems."

ABB`s Power Transmission and Distribution segment employs approximately 45,000 people worldwide with orders in 1995 of about US$ 9 billion. The Power Generation segment employs more than 46,000 people worldwide with orders in 1995 of over US$ 10 billion. The ABB Group employs approximately 210,000 people with orders in 1995 of over US$ 36 billion. (End)

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    Page information:
    • Mr. John Fox
      ABB Corporate Communications, Zurich
      Tel. +41 1 317 7371
      Fax. +41 1 317 7958
    • Gudni Dagbjartsson
      ABB Power Transmission & Distribution
      Tel: +41 1 317 7377
      Fax: +41 1 311 6676
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