TNB signs agreements to build RM2.5b power plant

Tenaga Nasional Bhd, Malaysia’s largest electricity utility, said it signed agreements with Samsung Engineering & Construction Malaysia Sdn Bhd and Siemens AG for building and operating a RM2.47 billion power plant in the northern state of Penang.

In a filing today with Malaysia’s stock exchange, Tenaga said it signed an engineering, procurement and construction contract for the 1,071 megawatt power plant with Samsung Engineering, plus a long-term service and 20-year operation and maintenance agreement with Siemens.

The filing did not give a breakdown of the value of the different agreements for the combined cycle gas turbine plant.

The power plant is scheduled to complete by the end of 2015, Tenaga said.

In another filing today, Tenaga said it expects to sign a seven-year contract soon for a joint venture with Kharafi National of Kuwait to operate and maintain a power plant in Kuwait. It said the contract will valued at RM1 billion.

Today, shares of Tenaga fell 1.3 per cent to close at RM6.90. The benchmark stock index fell 2.4 per cent. 

– Reuters