Tenaga Nasional Berhad (TNB) has announced the execution of Memorandum of Understanding (MOU) dated 22 September 2014 held in Dhaka between a consortium of TNB & Powertek Berhad (PB), a subsidiary of 1Malaysia Development Bhd, with Bangladesh Power Development Berhad (BPDB) for the proposed development of a 1,320MW Coal-Fired Power Plant at Maheshkali, Cox’s Bazar, Bangladesh.
The execution of this MOU is to outline the general understanding and framework for the exclusive cooperation between TNB-PB and BPDB to develop an Independent Power Project (IPP) Project in Maheshkhali, Cox’s Bazar, Bangladesh and its main scope of cooperation is for the parties to form a joint working team to conduct project’s feasibility study and subject to the feasibility study and other approvals, incorporate a joint venture company to develop the project on a Build-Operate-Own basis and to sign a long-term power purchase agreement with BPDB for the sale and purchase of power from the Project.
The commercial operation date of the project is expected to be in 2019.
According to Bernama, the TNB-Powertek consortium and BPDB would have equal equity shareholding in the power plant.
The source added that the MoU was valid for two years, unless extended by mutual agreement or when the parties signed a definitive JV.
The feasibility study was expected to take place within six to nine months, the tender for the engineering, procurement and commission contract within three to six months, and the completion of project documentation to achieve financial close within nine to 12 months.