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BERNAMA - Bank Pembangunan to co-finance RM3.3b power plant project in Pulau Indah
Monday, 29 March 2021

KUALA LUMPUR: 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, 1,200-megawatt combined-cycle gas turbine power plant project in Pulau Indah, Selangor.

In a statement today, it said the financing for the power plant will be provided by three financial institutions, which are BPMB, Maybank Islamic Bhd and United Overseas Bank (Malaysia) Bhd, via a Fresh Commodity Murabahah Term Financing-i Facility amounting to RM2.7 billion.

The power plant project sits on a 24.28 hectares of reclaimed land in Mukim Klang, Selangor, adjacent to the Port Klang Free Zone.

“The site is accessible by road via Lebuhraya Pulau Indah, Persiaran Masjid Sultan and Jalan Sidang Adnan, and is about 35 kilometres from Klang town,” it added.

Meanwhile, BPMB’s president and group chief executive officer Arshad Mohamed Ismail said as a development financial institution, BPMB’s role in nation building and continuous support towards the government’s agenda will be emphasised through the project.

“We are pleased to have entered into this deal with PIPP to part-finance the power plant in Pulau Indah as the project has significant, economic, environmental and social benefits,” he said.

PIPP, which is 75 per cent owned by Worldwide Holdings and 25 per cent owned by Korea Electric Power Corp, received a letter of award from the Energy Commission on Sept 10, 2019 to undertake the project.

BPMB is wholly owned by the Malaysian government through the Minister of Finance Inc.

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