Kimanis Power has signed a contract with the consortium of CTCI of Taiwan for the construction of the 300MW combined-cycle gas-turbine power plant in Sabah, Malaysia.
Work under the contract will include commissioning of the gas-fired power plant and its related facilities and infrastructure.
The project is located on a 16.59ha site in Kimanis and will be implemented by Petronas Carigali.
The first 100MW generation block of the proposed 300MW of the CCGT plant is expected to be completed in December 2013.
Sabah Minister of Industrial Development Datuk Raymond Tan Shu Kiah said the MYR 1.6bn ($520m) project is expected to supplement Sabah's increasing demand for electricity.
The Kimanis power plant was designed in a such a way to allow its expansion up to a maximum of 400MW as the demand arises, Bernama reports.
Kimanis Power is a joint-venture initiative between Petronas Gas (PGB) holding 60% interest and NRG Consortium (Sabah), a business arm of the Yayasan Sabah Group holding 40% interest.