Search

 

Cablegate: Singapore to Divest Power Companies by Early 2009

VZCZCXRO1815
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHGP #1583 2400917
ZNR UUUUU ZZH
R 280917Z AUG 07
FM AMEMBASSY SINGAPORE
TO RUEHC/SECSTATE WASHDC 3869
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC

UNCLAS SINGAPORE 001583

SIPDIS

STATE PASS USTR FOR AUSTR WEISEL AND DAUSTR BELL
COMMERCE FOR JBAKER

SIPDIS

E.O. 12958: N/A
TAGS: ENRG EPET EINV ETRD EFIN ECON SN
SUBJECT: SINGAPORE TO DIVEST POWER COMPANIES BY EARLY 2009

REF: SINGAPORE 1167

1. (U) The Government of Singapore recently announced plans to sell

all three of its wholly owned power generation companies (gencos) by

2009. Temasek Holdings, the government's investment arm, cited a
favorable market as the driving force behind the move. Temasek has

been planning to divest the gencos - Tuas Power, Senoko Power, and
PowerSeraya - for nearly a decade. However, sub-optimal local
conditions as well as the 2001 Enron debacle delayed its plan.


2. (U) The three gencos together supply approximately 80 percent of

Singapore's energy. Two other government-linked companies (GLC),
SembCorp Cogen and Keppel Merlimau Cogen, supply the remainder. The

five firms currently provide capacity that far exceeds Singapore's
current demand. However, construction of new petrochemical
refineries
and multi-billion dollar casinos, coupled with predictions of steady

economic growth in Singapore, are fueling interest in the power
generation business. A U.S. genco, Intergen, is also trying to
enter
the market by building a new gas-fired power plant (reftel). That
project has been delayed for several years due to a dispute with two

other GLCs, Power Gas and Gas Supply, over gas pipeline access.

3. (U) According to press reports, a number of foreign companies
from
Japan, China, Malaysia, and the United States have expressed
interest
in the gencos, each of which is worth about S$2 billion (US$1.3
billion). Local players, including the two other gencos, are also
likely to join the bidding. The sale of the state-owned gencos
represents another step forward for Singapore's energy
liberalization
process, which has included lifting caps on foreign ownership
(2000),
breaking up the country's former monopoly, Singapore Power, to form

the three gencos now up for sale (2001), and passing the Amended Gas

Act (2007).

HERBOLD

© Scoop Media

 
 
 
World Headlines

 

Gordon Campbell: On The Washington Riot And The Georgia Results
Hong Kong and Washington DC. On the same morning, the tyrants in power in Beijing and their counterpart in the White House have shown how they refuse to accept the legitimacy of any different points of view, and the prospect of losing power… More>>

WHO: Vaccination No Guarantee Of Virus Eradication

In the final World Health Organization (WHO) COVID-19 press conference of the year, on Monday, senior officials warned that the virus is 'not necessarily the big one', and that there is a real chance of another, more serious pandemic spreading ... More>>

Covid: Two Billion COVID Vaccine Doses Secured, WHO Says End Of Pandemic Is In Sight

The end of the pandemic is in sight but we must not let our guard down, the head of the World Health Organization (WHO) said on Friday, as he welcomed the news that the global vaccine partnership COVAX has lined up almost two billion doses of existing ... More>>

UN: Guterres To Seek Second Five-year Term
António Guterres will be seeking a second five-year term as UN Secretary-General, which would begin in January 2022.... More>>


UN Rights Office: Iran Execution Of Child Offender Breaks International Law

The execution of an Iranian man for a crime allegedly committed when he was 16 years old has been condemned by the UN Human Rights Office (OHCHR) and raised concerns over violations of his right to a fair trial. In a statement released on Thursday, ... More>>

UN News: Fighting Displaces Over 500,000 In Northern Mozambique, Reports UN Refuge Agency

Attacks by armed groups in Mozambique’s Cabo Delgado, Nampula, Zambezia and Niassa provinces have displaced more than 530,000 people, many of whom have been forced to move multiple times, the UN refugee agency (UNHCR) said on Friday. According to ... More>>