Tadmax partners Kepco for Pulau Indah power project

PETALING JAYA: Tadmax Resources Bhd has entered into a Joint Development Agreement (JDA) with Korea Electric Power Corporation (Kepco) for a new 1,000MW combined cycle gas-fired power plant (CCGT) in Pulau Indah, Selangor, which will be undertaken via a project company named Tadmax Indah Power Sdn Bhd (TIP).
The news comes after Tadmax said in May 2017 that it will develop the project on its own with the help of a technical partner, after its original partner Tenaga Nasional Bhd claimed to not being keen on the project because of its own jobs.
The group announced in a Bursa Malaysia filing that the two parties have formed a consortium for the project which will sit on Tadmax’s own piece of land in Pulau Indah.
The consortium which will be led by Tadmax, will work and prepare the Technical and Financial Proposals needed for submission to the Energy Commission (ST) by Aug 1, 2018. TIP will also serve as the channel of engagement with relevant parties in relation to the project.
The JDA will be subjected to the approval of the ST. Kepco whose majority shareholder is the government of South Korea, has expressed its intention to secure 25% equity interest in TIP upon the successful implementation of the JDA.
“During this phase of project development, each party shall bear its own internal costs and Kepco has agreed to bear 25% of direct and external third party cost,” Tadmax said.
The group said the JDA is in compliance with the EC’s letter dated Sept 13 for a suitable and active technical partner for the project. The group is also of the view that the JDA could potentially lead to a shareholders’ agreement between the parties.
Kepco is South Korea’s largest state-owned public utility company with assets of US$147 billion (RM615.9 billion) and annual revenue of US$50 billion. The South Korean government owns 51% of Kepco’s shares.
Tadmax’s shares remained unchanged at 36.5 sen with some 1.5 million shares traded.