By G. Sharmila
As media speculation mounts on the reported award of Project 4A via direct negotiations to YTL Power International Bhd, the Energy Commission (EC) has yet to give a definite answer to Tenaga Nasional Bhd (TNB) union representatives on the matter.
EC chairman Abdul Razak Abdul Majid told TNB union representatives on Tuesday that the EC would maintain the current process of open bidding. However, he also said that the final decision still rests with the government after taking into account all the related factors, including national interests.
Earlier this month, it was reported that Project 4A had already been awarded via direct negotiations and not via the competitive bidding or open tender process as has been the norm. Following this news, Abdul Razak was quoted by Business Times saying that Track 4A and 4B would be awarded via open tender and not via direct negotiations.
However, fresh reports surfaced yesterday that Project 4A would be awarded via direct negotiations, which would make it seem that the EC has changed its mind. KiniBiz has yet to receive a response from the EC to questions about the award.
On Tuesday, TNB union representatives had also asked the EC to re-evaluate the decision to renew the power purchase agreements of the IPPs following the end of their contracts as early as 2015. Abdul Razak’s response was that “the IPPs cannot simply go off like this” and that the EC needed to ensure “enough supply at all times at all costs”.
On Tuesday, sixteen key representatives from Persatuan Eksekutif Tenaga Nasional Bhd (PETNB), Kesatuan Percantuman Pekerja-Pekerja TNB (KPPPTNB) and TNB Junior Officers Union met with EC chairman Abdul Razak Abdul Majid and chief executive officer Ahmad Fauzi Hasan and two more executives from the EC.
According to a joint media statement by the three TNB union organisations, the purpose of the meeting was to seek clarification on the process of awarding power plant projects, as well as on the direction of the electricity supply industry following the end of first-generation independent power producers (IPPs) contracts this year.
A union official who declined to be named told Kinibiz that prior to the TNB union representatives’ meeting with the EC, they had sent a letter to prime minister Najib Razak on May 16th, appealing to him that power plant projects continue to be awarded via the open bidding process. However, the official declined to disclose the contents of the letter.
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