KUALA LUMPUR (Sept 14): Tadmax Resources Bhd entered into a Heads of Agreement (HoA) today with Worldwide Holdings Bhd and Korean Electric Power Corporation (KEPCO) for the development of a power plant in Pulau Indah.

The parties had signed a Memorandum of Understanding on July 27 with regard to the 1,000-1,200 MW combined cycle gas turbine  plant.

In a filing with the exchange today, Tadmax said the project company, Tadmax Indah Power Sdn Bhd, will undertake the planning, construction, development, commissioning, operation and commercialization of the project.

It added that subject to the Energy Commission’s (EC) approval being obtained and upon execution of the definitive agreement, the company will be owned 40% by Tadmax, 35% by Worldwide and 25% by KEPCO.

However, the parties have agreed that the decision-making mechanism in the company and the equity participation may be varied from time to time depending on the negotiation and finalisation of the definite agreement, Tadmax said.

“The parties have also agreed that, upon written approval of the EC but subject to the concurrence of the parties, the name of the project company will be changed reflecting the said equity participation, it added.

Tadmax shares closed unchanged at 20 sen, for a market capitalisation of RM156.75 million.