Many people have been asking me why I have been buying so much of JAKS shares and also how large is its 1,200 MW power plant.
Let me answer the first question:
From Bursa announcement, you already know that JAKS has the contract to construct the 1,200 MW coal fired power plant to sell electricity to the Vietnamese Government for 25 years. Since the project cost is about Rm 7.5 billion, JAKS has not been able to find a suitable financier for 4 years.
Finally, the company found a consortium of Banks and contractors from China to undertake the whole project last year. The Chinese party has been involved in about 90% of the electric power supply in China. After completed the study of the IPP contract, the Chinese party is prepared to give about Rm 400 million to JAKS during the construction period and 30% with 10% option share of the JV company in selling electricity to the Vietnamese Government for 25 years.
Let me answer the second question:
Google is like God who knows everything. If you want to know any thing just google. From google I found that 1 MW can supply about 1,000 homes.
That means JAKS’ 1,200 MW can supply electricity to about 1,200,000 homes. Assuming one home has 5 people, the power plant can supply electricity to 6 million people.
Wah! Amazing! Small little JAKS can help 6 million people.