Tenaga partners with 1MDB to develop power plant in Bangladesh

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KUALA LUMPUR (Sept 23): A consortium of Tenaga Nasional Bhd and Powertek Bhd, a wholly owned unit of 1Malaysia Development Bhd (1MDB), has signed a memorandum of understanding with Bangladesh Power Development Bhd (BPDB) for the development of a 1,320MW coal-fired power plant in Maheshkali, Cox’s Bazar, Bangladesh.

Under the agreement, the parties will form a joint working team to conduct a feasibility study for the independent power project and eventually incorporate a joint venture company for the development, if deemed feasible.

The Tenaga-Powertek consortium will then sign a long-term power purchase agreement with BPDB for the sale and purchase of power from the project.

“The Commercial Operation Date of the Project is expected to be in 2019,” said Tenaga in its announcement to Bursa Malaysia.

Apart from this partnership, Tenaga is said to also participate in RM11 billion project 3B, which 1MBD has been awarded at home. Tenaga would hold an equity stake of 20%, according to TheEdge Weekly.

Tenaga closed eight sen higher at RM12.28 today, bringing its market capitalisation to approximately RM69.30 billion.