Tad­max: Pu­lau In­dah power plant will start com­mer­cial oper­a­tions in 2023

The Sun (Malaysia) - - SPEAK UP - BY EE ANN NEE

PETALING JAYA: Tad­max Re­sources Bhd is con­fi­dent that its 1,000-1,200MW com­bined cy­cle gas-fired power plant in Pu­lau In­dah will not ex­pe­ri­ence a de­lay with the par­tic­i­pa­tion of Korea Elec­tric Power Corp (Kepco), but is ahead of sched­ule and fast-tracked to meet its com­mer­cial op­er­a­tion date on Jan 1, 2023.

Tad­max ex­ec­u­tive di­rec­tor Datuk Noel John ( pix) said it is more than halfway through its ne­go­ti­a­tions with the Sin­gle Buyer Depart­ment, a gov­ern­ment en­tity that pre­pares power pur­chase agree­ments on be­half of Te­naga Na­sional Bhd (TNB), Petronas Gas Bhd for the gas sup­ply as well as trans­mis­sion works agree­ment with TNB Trans­mis­sion. It has also en­gaged with banks for fi­nanc­ing.

“In one year, we’ve moved fast be­cause we’ve brought a team into our power sec­tor. Oth­ers will wait one to three months and en­gage con­sul­tants but we’ve pre­empted all that by hav­ing our own team and we got the con­sul­tants on board. We’ve moved quite far ahead. We don’t want to de­lay, we want to get it faster,” he told a press con­fer­ence yes­ter­day.

More­over, he said Tad­max is listed as a Com­mit­ted Gen­er­a­tion Projects for 2023 in the Penin­su­lar Malaysia Out­look 2017 re­port pub­lished by the En­ergy Com­mis­sion (ST).

“We’ve passed the first mile­stone and we’re mov­ing on to the sec­ond mile­stone by Aug 1, 2018,” said Noel.

Tad­max is to sub­mit tech­ni­cal and fi­nan­cial pro­pos­als for the im­ple­men­ta­tion of the project by Aug 1, 2018. The first mile­stone saw Tad­max sub­mit­ting de­tailed fea­si­bil­ity study re­ports, proof of land own­er­ship and a com­mit­ment bond of RM10 mil­lion.

It is es­ti­mated to open bids in ex­cess of RM2 bil­lion for the plant and has short­listed eight for­eign en­gi­neer­ing, pro­cure­ment, con­struc­tion and com­mis­sion­ing con­trac­tors in ac­cor­dance with EC guide­lines.

On Tad­max, which has no ex­pe­ri­ence in the power sec­tor, Noel said some of the big ma­jor en­ergy pro­duc­ers to­day also started with­out any ex­pe­ri­ence in the power sec­tor, and that “ex­pe­ri­ence” comes from the peo­ple in the com­pany.

“The com­pany has no ex­pe­ri­ence, the peo­ple have ex­pe­ri­ence. We’ve set-up a tech­ni­cal team headed by Datuk Ge­orge Mathews with his team of en­gi­neers who have to­gether (in to­tal) more than 100 years of ex­pe­ri­ence in the power sec­tor.”

Ge­orge pre­vi­ously worked for util­ity com­pa­nies in­clud­ing TNB, Pöyry En­ergy Sdn Bhd, Wor­leyPar­sons Sdn Bhd and TNB En­gi­neer­ing Corp Sdn Bhd. His team con­sists of ex-TNB en­gi­neers and even those from the Sin­ga­pore power sec­tor.

“That team will con­tinue to be strength­ened in 2018 as we move to­wards mile­stone two and into the con­struc­tion pe­riod.”

Noel said Tad­max is more than ca­pa­ble, to­gether with its tech­ni­cal con­sul­tants like Ficht­ner, to do the tech­ni­cal eval­u­a­tion and de­liver this project to the ST.

“Kepco can value add, im­prove, strengthen our tech­ni­cal and fi­nan­cial ca­pa­bil­ity in mak­ing sure this project is suc­cess­fully im­ple­mented. They (Kepco) have al­ready started en­gag­ing with us around March/April last year,” said Noel.

Kepco is South Korea’s largest sta­te­owned pub­lic util­ity com­pany of which 51% is owned by the gov­ern­ment of South Korea, with as­sets of US$147 bil­lion (RM615.9 bil­lion) and an­nual rev­enue of US$50 bil­lion. It in­tends to se­cure a 25% stake in the con­sor­tium Tad­max In­dah Power Sdn Bhd upon the suc­cess­ful im­ple­men­ta­tion of the joint de­vel­op­ment agree­ment, sub­ject to the EC’s ap­proval.

He said it is con­fi­dent that this project will pro­vide ad­e­quate re­turns to share­hold­ers in the fu­ture.

Tad­max closed 4.11% higher at 38 sen yes­ter­day with 16.12 mil­lion shares traded.

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