Prai Power Gas-fired plant

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The 350 MW, gas-fired plant was given approval in third quarter 2000. The project is valued at $263 million and is being sponsored by SKS Ventures (80%) and Tenaga Nasional Bhd. (20%) on a BOT basis. In August 2002, IPP Malakoff was reported to be arranging a loan of M$282m to finance its acquisition of SKS' share in the project. Prai Power will construct, operate and own the plant for 21 years. It has secured a 21-year PPA with TNB at a tariff rate averaging 12 Malaysian cents per KW/h (US$0.0315789 per KW/h). Commissioning is targeted for first quarter 2003. Sumitomo began preparation for construction in first quarter 2001. The project entered operation on June 30, 2003. Financing was achieved in first quarter 2001. Prai Power is issuing M$780m (US$205m) in Islamic bonds. The lead arranger of the underwriting agreements was KAF Discount, along with co-arrangers Affin Discount and Bank Muamalat who are also the primary subscribers. The bonds have been assigned a rating of "AA3" by Rating Agency Malaysia. The project will also be financed on equity injection through the issuance of US$40 million in Musharakah Redeemable Convertible Preference Shares from Bank Islam Malaysia Bhd. In October 2003, Malaysian private power developer Malakoff Bhd. issued 1.85 billion ringgit (US$487 million) of six-to 10-year bonds, US$21.7 million of which was used to buy 100% of Prai Power Sdn Bhd. and M$199.5 million (US$52.5 million) of which was used to settle shareholder advances owed by Prai Power to SKS Ventures.