TNB, PLN plan power plant in Kalimantan

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) will build a 2x200megawatt (MW) coal-fired power plant in Kalimantan with PT PLN (Persero), the Indonesian stateowned utility company.

Both companies signed a memorandum of understanding (MoU) on the project yesterday.

TNB said the project was in line with its global expansion to secure new overseas generation capacity and to meet the rising demand for electricity in Sabah.

It said the MoU was for two years, whereby the parties would start studying the best business models, associated risks and financing options in relation to the project.

“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,” said TNB in a statement.

The MoU also includes the supply and export of electricity from the proposed power plant to Sabah.

TNB holds an 83 per cent stake in Sabah Electricity Sdn Bhd (SESB), with the remaining stake owned by the Sabah government.

SESB provides electricity generation, transmission and distribution services in Sabah.

The MoU was signed by TNB president and chief executive officer (CEO) Datuk Seri Azman Mohd, PLN president and CEO Sofyan Basir and SESB managing director Abdul Razak Salim.

The project was mooted by Prime Minister Datuk Seri Najib Razak and Indonesian President Joko Widodo during a bilateral meeting in Jakarta in March. Ayisy Yusof