It won the contract from a competitive bid process conducted by the EC, TNB said in a filing with Bursa Malaysia.
KUALA LUMPUR: Tenaga Nasional Bhd
(TNB) has signed a memorandum of understanding (MoU) with Indonesian state-owned PT PLN (Persero) (PLN) to develop a 2x200MW coal-fired power plant in Kalimantan, Indonesia.
In a statement, TNB said the MoU, among others also include the supply and export of electricity from the proposed power plant to Sabah, Malaysia.
TNB holds 83% interest in Sabah Electricity Sdn Bhd (SESB) which provides electricity generation, transmission, and distribution services in Sabah. The remaining 17% stake in SESB is owned by the Sabah State government.
TNB said the MoU was for a period of two years whereby the parties involved would start exploring and studying the best business models, associated risks and financing options in relation to the project.
"To TNB, the project is in line with its global expansion to secure new overseas generation capacity and its efforts to meet the rising demand for electricity in Sabah," the utility giant said.
The project was first mooted by Prime Minister, Datuk Seri Najib Tun Razak and his Indonesian counterpart, President Joko Widodo when both Asean leaders met during their bilateral meeting on the sidelines of the Indian Ocean Rim Association (IORA) summit in Jakarta in March this year.
The signing of the MoU is expected to be a win-win venture for both countries through the enhancement of bilateral cooperation and improvement in power supply stability for Sabah and Kalimantan.
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