Tenaga Nasional Bhd (TNB) has announced that it will go ahead with building the 1,400MW Pasir Gudang power plant with SIPP Energy Sdn Bhd, despite talk that the so-called Track 4A project would be re-tendered to the public.
TNB’s announcement to Bursa Malaysia yesterday also signals that YTL Power International Bhd would not be able to bid for the project after it withdrew from the consortium that was awarded the contract via direct negotiation.
YTL withdrew from the consortium with TNB and SIPP Energy after YTL Group MD Tan Dr Sri Francis Yeoh was embroiled in a backlash following his statement criticising the government over cronyism.
When it announced the withdrawal in June, YTL Power said it hoped to take part in any future bidding for Track 4A.
In its announcement, TNB said it had signed a “heads of agreement signifying the principal terms of the proposed JV with SIPP Energy” for the combined- cycle power plant.
The agreement, however, still awaits an approval from Energy Comission (EC).
The power project was earlier awarded by ST to a consortium that included SIPP Energy, YTL Power and TNB.
The award to the threemember consortium was given by ST on a fast-track basis citing urgency in the country to meet energy needs.The power plant was aimed to be operational by 2018, earlier than the scheduled time of 2020.
The award of the project to YTL came under scrutiny and saw itself getting murkier with Yeoh’s comments on “crony capitalism”.
Yeoh in his comments at a seminar had talked as to how he does not need to know prime ministers in other countries to do business and that Malaysia should free itself from crony capitalism.
However, after much backlash, Yeoh took a U-turn saying that crony capitalism is not how things are done in the country and that he was misrepresented.