TADMAX SHARES FALL 19PC

News of RM3.5b Pulau Indah power project termination drags stock lower

TADMAX Resources Bhd shares fell as much as 19 per cent after resuming trading yesterday, following news that the government has pulled the plug on a RM3.5 billion power project in Pulau Indah, Selangor.

Tadmax, which has a 40 per cent stake in the project that was awarded through a direct negotiation by the previous government, dropped as much as 5.5 sen, or 19.3 per cent, to 23 sen before the afternoon break.

The stock, however, recovered some losses to settle 14.04 per cent lower at 24.5 sen on the day Bursa Malaysia’s benchmark index breached 1,700 points for the first time in three weeks.

Over the weekend, reports emerged that Putrajaya had cancelled the 1,200 megawatts combined-cycle gas-turbine power plant.

This prompted Tadmax to request for a trading suspension on Monday and clarified in a Bursa filing that it had not received any termination notifications of the project.

“We refer to the abovementioned article which reported that the government has terminated Tadmax’s 1,000-1,200MW power plant project in Pulau Indah.

“Tadmax is not aware of this alleged development. Tadmax wishes to notify that to-date, it has complied with all the requirements of all relevant government agencies and has not received any notifications of termination.

“Tadmax is of the opinion that the above article has no basis. Tadmax will make the appropriate announcement for immediate public release in a timely manner, upon further material development on the power plant project,” said the company in the Monday filing.

Tadmax had roped in South Korea’s state-owned utility Korea Electric Power Corp (Kepco) as its technical partner and Selangor state-linked Worldwide Holdings Bhd as its strategic partner to carry out the project.

Under the terms of their respective agreements, Kepco will hold 25 per cent of Tadmax Indah Power Sdn Bhd, Worldwide, 35 per cent, and Tadmax, the biggest portion of 40 per cent.

The proposed power plant would comprise two blocks combine-cycle power plant, with natural gas as the main fuel and distillates as the back-up fuel.

The power generated from the new power plant will be sold to Tenaga Nasional Bhd. The project was scheduled to be commissioned by early 2023.

Energy, Technology, Science, Climate Change and Environment Minister Yeo Bee Yin had previously announced that the government’s decision to review power plant projects awarded by the previous administration.

The review, she said, would be able to save the government RM1.26 billion in electricity supply to consumers.

Yeo, when contacted by NST Business yesterday, was not available for comments.