KUALA TERENGGANU: Tenaga Nasional Berhad (TNB) is in the midst of building another hydroelectric plant in Hulu Terengganu to supplement the escalating energy needs of the nation.

TNB chairman Tan Sri Leo Moggie said work on the new dam is expected to commence next year and it is expected to take three years to complete. Set for completion in 2013, the dam is expected to generate 250 megawatts of hydropower.

“We have yet to decide on matters like the cost of the project as we are in the midst of processing the issuance of the tender,” he said Tuesday after the signing ceremony of the second supplementary agreement on the royalty for the water usage at Sultan Mahmud Hydroelectric Dam in Kenyir Lake, Hulu Terengganu with the Terengganu Government at Wisma Darul Iman, here.

Mentri Besar Datuk Ahmad Said and deputy State Secretary (development) Datuk Adzlan Mohd Dagang represented the state government during the ceremony.

Moggie said the electricity supply from the second dam would be channelled via a two kilometre delivery line that would connect the existing Kenyir-Tanah Merah (Kelantan) network thus connecting to the national grid.

He said the second dam would boost the construction of an underground supply station and two dams, Puah Dam with a height of 78m and Tembat Dam with a height of 30m. He said the project would also create two man-made lakes, the Puah Lake that is about 6,000ha in size and Tembat Lake that is scaled approximately 130ha, both fringing Kenyir Lake.

Moggie said a detailed environmental impact assessment will be carried out prior to commencing the project so that it would not be disruptive to the surrounding environmental and aquatic ecosystem.

He said TNB would take all precautionary measures to protect, preserve and safeguard the ecosystem at these sites by adhering to the standard set by the relevant bodies before the start of the project.

On the supplementary agreement, the state would receive RM11.3mil annually as water royalty for the next one decade.

The agreement was the third revision after the first was stamped in 1987 where the state received a royalty of RM3.8mil, annually for 10 years and another was signed in 1997 until it expired in 2007.

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