KUALA LUMPUR (May 8): TNB Repair and Maintenance Sdn Bhd (TNB REMACO), a wholly-owned subsidiary of Tenaga Nasional Bhd, has been awarded a US$176 million (RM763.22 million) contract for the operation and maintenance (O&M) of the 1,223 megawatt (MW) Balloki combined cycle power plant located in the Punjab province, Pakistan.

The contract is a new milestone for TNB REMACO as it is the largest O&M contract for a single power plant, both locally and internationally.

In a filing with Bursa Malaysia today, Tenaga Nasional said the  12-year contract was awarded by the National Power Parks Management Company (Private) Ltd, which is a government-linked company in Pakistan.

“TNB REMACO won the contract through an international bidding exercise and the O&M agreement was inked in Lahore, Pakistan last Friday.

“The O&M contract is TNB REMACO’s largest in Pakistan and is set to broaden its presence in the country,” the statement read.

The company’s other O&M contracts in Pakistan are for the Liberty Power Plant, Narrowal Power Plant and New Bong Escape Hydro Power Plant.

“Balloki Power Plant uses General Electric’s latest gas turbine technology, which will be able to fulfill the electricity demand in Pakistan, forecasted to reach 12,300 GWh by the year 2020,” said Tenaga Nasional.

The contract represents a new benchmark for TNB REMACO in bidding for future contracts related to operation and maintenance, as well as in achieving Tenaga Nasional’s aspiration to maximise revenue from non-regulated business.

Tenaga Nasional has been busy in expanding its business interests in South Asia. Last month, the utility giant announced it entered into a memorandum of understanding with its 30%-owned unit GMR Energy Ltd to venture into power plant and O&M in India, through TNB REMACO.

Tenaga Nasional shares closed up 2 sen (0.14%) to RM13.92 today, for a market capitalisation of RM78.8 billion.