Ranhill receives conditional nod to build power plant in Sabah

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KUALA LUMPUR (Feb 12): Two years after announcing the proposal, Ranhill Holdings Bhd has received a conditional letter of award (CLOA) from the Energy Commission (EC) to build a 300-megawatt (MW) combined cycle gas turbine power plant in Sandakan, Sabah.

In a filing with Bursa Malaysia today, Ranhill said the CLOA was issued to the consortium including SM Hydro Energy Sdn Bhd, which is a wholly-owned subsidiary of Ranhill Capital Sdn Bhd, which in turn is wholly-owned by Ranhill.

"SM Hydro Energy is currently evaluating the terms and conditions of the CLOA and Ranhill will make the necessary announcement to Bursa as and when the decision to accept the award has been made by SM Hydro Energy," it added.

On Oct 4, 2016, Ranhill had received approval from the government for the development of the proposed power plant by the consortium of private companies. The consortium was instructed to commence negotiations with Petroliam Nasional Bhd and the company identified by the government to develop the Trans-Sabah Gas Pipeline, to ascertain the terms and conditions of the gas supply required for the project. A letter of award will be issued by the EC after the terms of the gas supply agreement are determined.

Ranhill shares closed unchanged at 69.5 sen today, for a market capitalisation of RM617.38 million.