Signing Of Heads Of Agreement (HOA) Between Tenaga Nasional Berhad (TNB) and Sarawak Energy Berhad (

03/06/2008

TNB recently signed Heads of Agreement (HOA) with Sarawak Energy Berhad (SEB), which translate the understandings in the MOU into a binding agreement between TNB and SEB. The MoU is for both TNB and SEB to collaborate on the potential transmission of electricity to Peninsular Malaysia from hydro and / or coal power generated in Sarawak. Under the terms of the HOA, the parties will formalise an arrangement whereby SEB will develop and generate electricity capacity in order to enable it to supply to TNB, 3000MW of electricity from the period of 2017 to 2020 and a further 5000MW from the period of 2021 to 2030, based on a schedule to be mutually agreed by both parties. TNB and SEB have also agreed to jointly collaborate and undertake feasibility studies to determine the interconnection framework for the long-term power transmission from Sarawak to Peninsular Malaysia. A joint committee will be established to oversee and facilitate the implementation of the HOA. The implementation of the agreement/s with respect to the supply of electricity by SEB to TNB (such as power purchase agreements, interconnection agreements, etc) is expected to be concluded not later than 7 years prior to the respective targeted date for the supply of electricity or such other dates mutually agreed upon by both parties.