Special Yen Loan to Malaysia
March 31, 2000
- The Government of Japan has decided to extend to the Government of Malaysia a Special Yen Loan of up to a total of 53,764 million yen for the Port Dickson Power (Tuanku Jaafar) Rehabilitation Project (II), with a view to actively supporting its social and economic development efforts. Notes to this effect were exchanged on March 31 (Fri) in Kuala Lumpur between Mr. Hideki Harashima, Japanese Ambassador to Malaysia, and Mr. Othman bin Mohd. Rijal, Secretary General to the Treasury of Malaysia.
- Malaysia's energy policy has three main pillars: diversification of energy, efficient use of energy, and preservation of the environment. As part of this energy policy, the above-mentioned project is intended to rehabilitate Port Dickson power plant, for the purpose of reducing its burden on the environment and enhancing the efficiency and stability of the system.
- The Special Yen Loan Facility to Assist Economic Structural Reform, announced in December 1998, is applied to this loan designed to support the economic recovery of Malaysia, which have been affected by the Asian financial crisis. The power plant in this project is deemed to be included in the area of strengthening of the production base, which is one of the eligible areas of projects of the Special Yen Loan Facility.
Terms and conditions of this loan
(1) interest rate: 1.0% (2) repayment period: 40 years (including a 10-year grace period) (3) procurement method: general untied
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