KUALA LUMPUR (April 21): Independent power producer (IPP) Malakoff Corp Bhd has allocated RM900 million in capital expenditure (capex) for its expansion plans this year, out of which RM700 million has been earmarked for the new 1,000MW Tanjung Bin Energy power plant.

Malakoff acting chief executive officer (CEO) Habib Husin said the group is eyeing opportunities for expansion both domestically and overseas, to meet the group's targeted capacity of 10,000MW by 2020.

"We have an abundance of land bank in strategic locations where our power plants are located, so there are opportunities for repowering and expansion domestically.

"We are also looking at opportunities in South East Asia, such as in the Philippines and Indonesia, and also in developed markets where there are pockets of opportunity, as well as the Middle Eastern and North African regions," he said at a press conference following the group's annual general meeting (AGM) today.

Habib said the group has engaged several parties for expansion, but declined to reveal the details as discussions are still ongoing.

Malakoff executive vice president Shaharul Farez Hassan said the group has allocated RM900 million in capex to fund its expansion plans for the year.

"The capex allocation is about RM900 million this year. Out of that, RM700 million is associated to the balance of the capex for the new Tanjung Bin Energy plant," he said.

Going forward, he said the group could either set up new plants or expand through acquisitions of other plants. He added that the main domestic opportunities this year would be in renewable energy.

Malakoff chairman Tan Sri Syed Anwar Jamalullail noted that the group's gearing is still low, allowing some room to raise further funding for capex.

"Our gearing is still low at about 2.3 times, so we can still raise funding for more capex," he said, adding that there is still space for a 1,000MW plant beside the Tanjung Bin Energy plant.