KUALA LUMPUR (Nov 15): Tenaga Nasional Bhd (TNB) is partnering Indonesian state-owned utility company PT PLN (Persero) to build a 2x200MW coal-fired power plant in Kalimantan, Indonesia.

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

In a statement today, TNB said it has signed a Memorandum of Understanding (MoU) with PLN for the proposed project. The MoU, among others, includes the supply and export of electricity from the proposed power plant to Sabah.

TNB holds an 83% stake in Sabah Electricity Sdn Bhd (SESB), which provides electricity generation, transmission, and distribution services in Sabah. The remaining 17% stake in SESB is owned by the Sabah state government.
 
The duration of the MoU is for a period of two years, whereby the parties involved will start exploring and studying the best business models, associated risks and financing options in relation to the project.
 
"The signing of 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.

The project was first mooted by Prime Minister Datuk Seri Najib Razak and his Indonesian counterpart President Joko Widodo when both Asean leaders met during their bilateral meeting on the sidelines of the Indian Ocean Rim Association summit in Jakarta in March this year.

TNB shares closed up two sen or 0.14% at RM14.84 today, with 16.52 million shares done, for a market capitalisation of RM83.86 billion.