Malaysia's state-owned utility company Tenaga Nasional Bhd (TNB) has signed an agreement to invest in a hybrid wind and solar power project in Jaffna peninsula.
TNB, one of the largest companies listed on Bursa Malaysia, announced in a market disclosure that it signed an investment agreement with KLS Energy group to set up a 35 MW Renewable Energy Hybrid Wind and Solar Power Project in Kankasanthurai, Jaffna.
The Malaysian utility company has been invited by KLS to acquire a stake in its wholly-owned subsidiary KLS Energy.
KLS Energy is the holding company of KLS Energy Lanka (Private) limited which has been granted a 20-year concession to develop the project by Ceylon electricity Board.
The Investment Agreement signed on 25 July allows for the completion of TNB's due diligence exercise and the continuation of exclusive negotiations to finalize the terms and conditions of TNB's proposed investment in the Project.
TNB's entry into the definitive agreements for the Project is subject to being satisfied with the results of due diligence exercise and the fulfillment of conditions precedent, the disclosure said.