KUALA LUMPUR: Tenaga Nasional Bhd has signed a power purchase agreement (PPA) with Pulau Indah Power Plant Sdn Bhd (PIPP) involving a proposed combined cycle gas power plant in Selangor.
PIPP is a special purpose company owned by Tadmax Resources Bhd (40 per cent), Worldwide Holdings Bhd (35 per cent) and Korea Electric Power Corporation (25 per cent).
Tadmax was required to enter into the PPA with Tenaga after being awarded the power plant project by the government.
In a filing with Bursa Malaysia on Friday, Tenaga said PIPP would construct, own, operate and maintain a gas-fired combined cycle electricity generating facility with a total nominal capacity of 1,200 megawatts at Pulau Indah, Selangor.
It said the PPA is valid for a period of 21 years from the commercial operation date of the first generating block on Jan 1,2024.
"The signing of the PPA will not have any effect on the issued and paid up share capital and the major shareholders’ shareholdings of TNB.
"It will have a neutral impact on the earnings of TNB over the term of the PPA since the generation cost is fully passed-through under the Incentive Based Regulation mechanism, ” it added. - Bernama
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