KUALA LUMPUR (Nov 13): Tadmax Resources Bhd has announced today that its combined cycle gas turbine (CCGT) power plant project in Pulau Indah will be jointly developed with South Korea's state-owned utility company, Korea Electric Power Corporation (KEPCO).

KEPCO is South Korea's largest state-owned public utility company, with 51% of its shares owned by the government of South Korea. It is listed on both the Korean Exchange and New York Stock Exchange, and has assets worth US$147 billion (RM615.89 billion).

In a filing with the local stock exchange today, Tadmax said both parties have signed the joint development agreement last Friday, in compliance with the Energy Commission's letter for Tadmax to seek a "suitable and active technical partner" for the project.

The project is the development of a new 1,200 MW CCGT power plant in Pulau Indah, Selangor, awarded to Tadmax by the Malaysian government through the Energy Commission back in August 2016.

In July this year, the group made progress by submitting a project feasibility, proof of land ownership, and a banker's cheque for a value of RM10 million in place of a commitment bond.

Under the terms of the agreement, Tadmax's project company, Tadmax Indah Power Sdn Bhd (TIP), will be the leading member of the consortium, responsible for the negotiation of project, and preparation and submission of the complete proposal and liaison with related authorities.

It will also be in charge of the engineering procurement and construction (EPC), operations and maintenance (O&M) and gas supply agreement, power purchase agreement (PPA), besides contractors and advisers.

Meanwhile, KEPCO will provide technical reviewing of the EPC and long-term supply agreement, preparation of the O&M plan and strategy, technical assistance and consultants, and support to achieve successful financial closing.

KEPCO, which has been involved with TIP in the development of the project since March this year, has also agreed to bear 25% of direct and external third party cost.

Upon successful implementation of the agreement, KEPCO intends to secure 25% equity interest in TIP.

The joint development agreement is not expected to have any effect on the share capital, shareholdings, net assets, earnings, gearing nor liabilities of Tadmax, the group said in its bourse filing.

Tadmax closed unchanged at 36.5 sen today after some 1.51 million shares were exchanged, giving it a market capitalisation of RM196.60 million.