8 shortlisted to bid for Tadmax’s RM2b power plant project
EPCC contractors required to submit bids by end of January the latest
TADMAX Resources Bhd has shortlisted eight companies for its RM2 billion power plant project in Pulau Indah, Selangor, following the company’s partnership with Korea Electric Power Corp (Kepco).
Kepco is South Korea’s largest state-owned public utility company.
“The engineering, procurement, construction and commissioning (EPCC) contractors, all of which are foreign companies, have been screened and evaluated technically and financially under the Energy Commission’s guidelines.
“The eight contractors are expected to submit their bids the latest by end of January next year. The companies are to pick up their documents by Wednesday (today),” said managing director Datuk George Mathews.
Tadmax Indah Power (TIP), the joint-venture vehicle of Tadmax and Kepco, will undertake the power plant project. Kepco will have a 25 per cent stake in TIP.
TIP managing director Datuk Syed Azmi Syed Othman said the commissioning operating date might be expedited.
“Upon getting the approval from the Energy Commission and the finalisation of the power purchase agreement (PPA), we will formulate the proposed tariff based on the EPCC price tendered. All of these submissions have to be done by August 1 next year,” he said after a media briefing on the Pulau Indah power plant project, here, yesterday.
Meanwhile, Tadmax executive director Datuk Noel John said the value of Kepco’s stake could not be divulged at this point as it was subject to the tariff that would be approved by the government and the Energy Commission.
“We do not foresee a higher tariff as the liberalisation of the power industry is taking effect, with more independent power producers awarded contracts.
“Kepco was among the four final contenders and we decided to partner with it based on its strong government backing.”
Tadmax had received a conditional letter of award to build a 1400-megawatt (MW) dual-fired combined-cycle power plant from the Energy Commission on August 2. TIP will have investments totalling RM3.5 billion.
“TIP will be the leading member of the consortium, which will be responsible for the negotiation of the project, preparation and submission of the complete proposal and liaison with related authorities.
“The participation of South Korea’s stateowned utility company in TIP is significant considering that it is a major international power utility,” added John.
It is estimated that Kepco’s 25 per cent stake in TIP is valued at RM875 million or even higher.
Kepco has a generation capacity of 105,229MW worldwide. It owns 80 per cent of the South Korean domestic power market. Its power generation includes nuclear, thermal and renewable energy.
The Pulau Indah plant is sited on a 24ha plot and comprises two blocks of combined-cycle gas turbine, with natural gas as the main fuel and distillate as the back-up fuel.
The power generated will be sold to Tenaga Nasional Bhd (TNB) through a PPA.
It was reported that TNB was invited to participate in the power plant project last year but the national utility company did not take up the offer.
We do not foresee a higher tariff as the liberalisation of the power industry is taking effect, with more independent power producers awarded contracts.
DATUK NOEL JOHN Tadmax Resources Bhd executive director