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FREE MALAYSIA TODAY - BPMB gets deal to co-finance RM3.3bil power plant
Monday, 29 March 2021

PETALING JAYA: The Bank Pembangunan Malaysia Bhd (BPMB) has clinched a deal with Pulau Indah Power Plant Sdn Bhd (PIPP) to co-finance the development of a RM3.3 billion 1,200MW combined-cycle gas turbine power plant project in Selangor.

The project will sit on 2.4ha of reclaimed land adjacent to the Port Klang Free Zone which lies on the northern bank of Selat Lumut.

BPMB said three financial institutions namely BPMP, Maybank Islamic Bhd and United Overseas Bank Malaysia would finance the power plant via a fresh commodity murabahah term financing-i-facility amounting to RM2.7 billion.

The bank said the signing ceremony was officiated by Selangor menteri besar Amirudin Shari with Worldwide Holdings chairman Nor Azmie Diron, South Korean ambassador Lee Chi-Beom as well as representatives from three financial institutions, including BPMB, in attendance.

“We are extremely pleased to have entered into this deal with PIPP to part-finance the power plant in Pulau Indah, Selangor as the project has significant economic, environmental and social benefits. Together with our co-financiers, we look forward to the successful development of the project,” BPMB president and group chief executive officer, Arshad Mohamed Ismail said.

He added that BPMB’s role in nation-building and their continuous support towards the government’s agenda of sustainable development and mitigation of climate change would be emphasised through the project.

In September 2019, PIPP received a letter of award from the Energy Commission to undertake the project.

Meanwhile, PIPP signed the power purchase agreement with Tenaga Nasional Bhd, which will buy the power plant’s entire daily available capacity and net electrical output for a period of 21 years.

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