PETALING JAYA: Tenaga Nasional Bhd (TNB), through its wholly-owned subsidiary TNB Power Generation Sdn Bhd, has bagged a contract to build a 300MW hydroelectric power plant in Gua Musang, Kelantan.

       In a filing with Bursa Malaysia yesterday, it said it had received a letter of notification from the Energy and Natural Resources Ministry for the project.

       The construction works of the project are estimated to take five years and they are expected to commence on June 1, 2027 and will have a 30-year power purchase deal.

       “The estimated project cost is RM5bil and will be financed through a combination of debt and equity. Any debt to be raised will increase TNB’s consolidated gearing, the quantum of which is dependent on the amount borrowed. However, it is not expected to have a significant material effect on TNB’s gearing position,” TNB said.