Malaysia's Tenaga signs agreements to build $1b power plant

KUALA LUMPUR (REUTERS) - Tenaga Nasional, Malaysia's largest electricity utility, has signed agreements with Samsung Engineering & Construction Malaysia and Siemens for building and operating a 2.47 billion ringgit (S$1 billion) power plant in the northern state of Penang.

In a filing with Malaysia's stock exchange, Tenaga said it signed an engineering, procurement and construction contract for the 1,071MW power plant with Samsung Engineering, plus a long-term service and 20-year operation and maintenance agreement with Siemens.

The filing did not give a breakdown of the value of the different agreements for the combined cycle gas turbine plant.

The power plant is scheduled to be completed by the end of 2015, Tenaga said.

In another filing, Tenaga said it expects to sign a seven-year contract soon for a joint venture with Kharafi National of Kuwait to operate and maintain a power plant in Kuwait. It said the contract is valued at 1 billion ringgit.

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