Korea Electric Power : KEPCO's first entry into Malaysian power generation market

KEPCO was awarded a project involving construction and operationof combined cycle gas-fired power plant in Pulau Indah, Malaysia.
Following the Joint Development Agreement between KEPCO andTADMAX, a Malaysian corporation, on September 28, KEPCO hasobtained an approval for this project from Malaysian Energy Commission,the project sponsor, on November 8.

This marks KEPCO's first entry into Malaysian power generationmarket.

Malaysia retains an A- sovereign credit rating by S&P anddeveloped infrastructure based on its abundant natural resources.

This project is to construct and operate combined cycle gas-firedpower plant with capacity of 1,200 megawatts in Pulau Indah, 60kilometers southwest of Kuala Lumpur. TADMAX has been developingthe project after receiving business approval from Malaysian governmentin August 2016.

KEPCO expects to get a final approval for this project from theMalaysian government in the third quarter next year and commenceconstruction in fourth quarter of 2019, to start commercial operation in2023.

Power purchase agreement for a term of 21 years has beensecured for this project.

KEPCO is expected to involve Islamic bond financing, which uponcompletion is expected to be the first such financing for a Koreancompany.
KEPCO and TADMAX aims to submit application for approval ofcontracts related to this project, including electricity tariff and powerpurchase agreement, by July 2018.