PETALING JAYA: A consortium comprising Ranhill Capital Sdn Bhd and Sabah Energy Corp Sdn Bhd (SEC) has won the tender for the development of a 100 megawatt (MW) power plant on the west coast of Sabah.

Ranhill Capital is a wholly-owned subsidiary of Ranhill Utilities Bhd.

The project involves the design, construction, ownership, operation and maintenance of a 100MW gas-fired combined-cycle gas turbine (CCGT) power plant on a build, own, operate and transfer basis.

Ranhill, in a filing with Bursa Malaysia yesterday, said the Energy Commission (EC) had issued a letter of notification (LON) to the unincorporated consortium.

The notification is subject to certain conditions including setting the nominal net capacity of the power plant at 100MW and a requirement to achieve commercial operation by March 1, 2026.

It is also required to form a special-purpose vehicle (project company) and submit all the relevant company registration documents to the EC within two months of the LON’s issuance.

The LON requires the consortium to maintain its effective shareholding in the project company for a period of 10 years.

The project company is required to execute a power purchase agreement (PPA) and gas sales agreement no later than seven days after the EC’s approval of the final draft or within two months from the LON issuance, whichever is later.

The PPA with Sabah Electricity Sdn Bhd will have a concession period of 21 years, according to Ranhill.

The project company is also required to achieve the financial closing date no later than five months from the date of the LON.

Additionally, the original signed copies of the Successful Bidder’s Declaration have to be executed and submitted to the EC within seven days from the date of the LON.

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