By G. Sharmila
The government has awarded the upcoming combined cycle gas turbine project known as Project 4A through direct negotiations instead of via open tender.
Citing industry sources, The Edge Financial Daily today reported that the Cabinet last week approved the award of Project 4A through direct negotiations instead of going the open tender route, which would have delayed the project by a year.
Project 4A is part of the fourth track of the country’s planting-up exercise and the tender for the project was supposed to commence this year. According to the paper, the project may have a total capacity of up to 1,400 MW (megawatts).
Tenaga Nasional Bhd (TNB) had called for an expression of interest in equipment, engineering, procurement and construction. The site proposed by TNB lies in Pasir Gudang, where there are already existing gas fired plants.
The paper also said that it is still unclear to whom the project will be awarded, but said that speculation is that TNB may partner with the Sultan of Johor for the project. The Sultan of Johor’s vehicle is SIPP Power Sdn Bhd, which partnered with YTL Power International Bhd to bid for Project 3B, which was later awarded to 1Malaysia Development Bhd (1MDB).
If Project 4A goes through, it will be the second power plant to be awarded via direct negotiations after the Energy Commission awarded a 50MW solar power plant to 1MDB last month, the paper pointed out.
The Energy Commission could not be reached for comments at press time. As of 11.37 am, TNB was up 0.33% or 4 sen to RM12.04.
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