Highlight 1MDB-Mitsui wins tender for RM11b, 2000 MW power plant; YTL Power loses bid

by **Cals** Fri 28 Feb 2014, 14:28

Highlight 1MDB-Mitsui wins tender for RM11b, 2000 MW power plant; YTL Power loses bid

Business & Markets 2014

Written by Ben Shane Lim of theedgemalaysia.com

Friday, 28 February 2014 14:12

KUALA LUMPUR (Feb 28): The consortium of 1Malaysia Development Bhd – Mitsui Co. Ltd (1MDB-Mitsui) has emerged as the preferred bidder for a 2,000MW coal-fired power plant tender, worth about RM11 billion, according to the official Energy Commission (EC) today.

This will be the kicker that government-owned investment fund 1MDB needs to list its RM10.8 billion worth of power assets.

“The EC has selected 1MDB-Mitsui to build, own and operate a coal-fired power plant of 2 x1000 MW capacity in Jimah, Negeri Sembilan, at a levelised tariff of 25.33 sen/kWh to be commissioned in stages by 1st October 2018 (Unit 1) and 1st April 2019 (Unit 2).

“The concession period for this power plant will be for a period of 25 years,” said the Energy Commission in a press release today.

This official EC statement confirms an earlier story by The Edge Financial Daily that 1MDB has emerged as a frontrunner in the tender, despite putting in a more expensive bid than YTL Power International Bhd.

YTL Power’s adjusted levelised tariff came in at 25.23 sen compared with 1MDB’s 25.65 sen bid, the Edge Financial Daily reported earlier.

Nonetheless, the EC stated: “The selection of the preferred bidder of Project 3B is based on the criteria of full compliance with all the bid requirements as stipulated in the Request For Proposal (RFP) document and the lowest levelised tariff offered.”

According to the EC statement today, the coal-fired power plant will consist of two units of IHI ultra-supercritical technology steam generator, and two units of Toshiba turbo generator with proven operational track records.

The proposed plant would incorporate the latest emissions control technologies to meet the environmental requirements, as well as reduction in coal consumption for every unit of energy generated, added the EC.

The EC said the preferred bidder will be required to sign a new Power Purchase Agreement (PPA) with Tenaga Nasional Berhad and a Coal Supply and Transportation Agreement (CSTA) with TNB Fuel Services Sdn. Bhd. based on terms and conditions stipulated by the Energy Commission.