KUALA LUMPUR (August 16): Tenaga Nasional Bhd (TNB) has signed a 25-year power-purchase agreement (PPA) with the state-controlled utility's wholly-owned unit TNB Manjung Five Sdn Bhd.

Under the PPA, TNB Manjung Five will design, construct, own, operate and maintain a proposed 1,000-megawatt coal-fired electricity-generating facility in Manjung, Perak, TNB told the exchange today.

"This PPA was a result of the Track 3A competitive bidding organised by Suruhanjaya Tenaga to meet the generation requirements in Peninsular Malaysia at the most competitive rates.

"The PPA, which has an expected commercial operation date of 1 October 2017, governs the obligations of the parties to sell and purchase the daily available capacity and, to the extent despatched, the net electrical output generated by the facility for a period of 25 years in accordance with the agreed terms and conditions," TNB said.

Besides the PPA, TNB said it has also signed a shared-facilities agreement (SFA) with TNB Manjung 5 and TNB Janamanjung Sdn Bhd.

Meanwhile, TNB Manjung 5 and TNB Janamanjung have also entered into a coal supply and transportation agreement (CSTA).

"The SFA provides for TNB’s right to use and have access to the facilities owned by TNB Janamanjung and the CSTA provides for the supply of coal to the facility," TNB said.