TNB Prai Combined Cycle Power Plant

Active

Prospective

Tenaga Nasional Bhd (TNB) developed a new 1,071 MW combined-cycle gas-fired power plant in Prai, Pulau Pinang on a build-own-operate basis. The electricity generated from the project would be sold to government of Malaysia for a period of 21 years through a power purchase agreement. TNB formed TNB Prai Sdn. Bhd. (TPSB), a 100% subsidiary of TNB, to implement the power project. TNB is the largest electricity utility company in Malaysia with core businesses in the generation, transmission and distribution of electricity. TNB is a publicly listed company in the Malaysian stock exchange. In November 2012, Malaysia's Energy Commission awarded the new Prai power project to TNB in a competitive bidding process where five other qualified international consortiums submitted their proposals to develop a 1,000-1,400MW CCGT in Prai. TNB offered two blocks of the latest proven design single shaft combined cycle plant with state-of-the-art technology with a total capacity of 1,071MW and plant efficiency of approximately 60%. The project achieved financial close on 22 May 2013 by raising Islamic project bond financing (Sukuk) of US$ 512 million for the construction and development of the power plant. HSBC and KAF Investment Bank acted as lead arrangers to the company for the financing. The total cost of the project is estimated at US$ 786 million. The new 1,071 MW Prai power plant is expected to commence operation by March 1, 2016.

Energy

Malaysia

High

World Bank Group

Project

Commercial, Cable car, Power Generation (CCGT), Power Transmission, Government, Automotive, Natural Gas, Telecommunications