KUALA LUMPUR (April 13): Independent power producer Edra Power Holdings Sdn Bhd is one step closer to listing on the stock exchange, with the signing of a power purchase agreement (PPA) between Tenaga Nasional Bhd (TNB) and its subsidiary Edra Energy Sdn Bhd, and the development of a power plant in Alor Gajah, Melaka, according to a Bernama report.
"We are looking forward to conducting an initial public offering (IPO) and doing the necessary to prepare for the listing," Edra Power president and executive director Datuk Mark Ling told the local newswire today.
On Tuesday, Edra Energy had signed the PPA with TNB in relation to the development of the new power plant in Alor Gajah.
Under the development, Edra Energy will construct, finance, own, operate and maintain the 2,242-megawatt power plant, which, when completed, will be the country's largest combined cycle gas turbine (CCGT) power plant.
"We are looking forward to deploying our expertise and resources to ensure the timely delivery of this project, which is expected to cost about RM6 billion.
"We are also committed towards ensuring the project benefits the local economy. In this regard, we estimate that the supplies and services to be procured locally for the construction of the project is worth about RM1.5 billion," said Ling in the report.
The project, which will utilise the latest "H" class gas turbine technology, and be the most efficient CCGT plant in Malaysia once it starts commercial operations in January 2021.
Edra Power, formerly owned by troubled 1Malaysia Development Bhd, was sold to China General Nuclear Power Corp for RM9.83 billion in November 2015. The deal also saw CGN Group assuming all the relevant gross debt and cash of the Edra operating companies, based on a valuation date as at March 31, 2015.