Kuala Lumpur: Malaysian infrastructure and energy group Malaysia Mining Corp (MMC) signed a maritime and property pact worth 16 billion ringgits ($4.7 billion) with an investment unit of the Dubai government, MMC said on Monday.
Under the pact, MMC and Dubai World will consider developing a maritime centre including an oil terminal, drydocks, a shipyard and cargo handling facilities in Malaysia’s southern Johor state, MMC said in a statement.
The pact will “leverage on the expertise and experience of Dubai World and further develop the hinterland in South Johor, where MMC’s port subsidiaries, Pelabuhan Tanjung Pelepas and Johor Port Bhd, are located,” MMC said. The plan would also unlock the value of its land in Tanjung Bin amounting to 2,255 acres, MMC added.
The announcement comes three weeks after MMC said the third and final unit of its 2,100MW coal-fired Tanjung Bin power plant began operations after a long delay.
The estimated gross development value of the proposed project with Dubai World amounts to 16 billion ringgits, MMC said, including about 9 billion which has been allocated to a petroleum and maritime industrial zone.
The project could commence later this year and is expected to become operational in the second half of 2010, MMC said.
Malaysian tycoon Syed Mokhtar Al-Bukhary controls MMC. Dubai World is a holding company set up by the Government of Dubai.
Trade between Muslim-majority Malaysia and the Middle East is increasing. Last month, a Middle East group that include Abu Dhabi state investment agency Mubadala Development Co and Gulf lender Kuwait Finance House agreed to invest $1.2 billion in the Iskandar development zone, also in southern Johor state.
Earlier this month, Malaysian construction firm WCT Engineering Bhd said it won a contract to build a racecourse in Dubai valued at roughly $1.32 billion, and in June, Saudi Telecom agreed to buy 25 percent of Malaysia’s top mobile phone operator Maxis Communications Bhd in a $3 billion deal.
Source : reuters