STAR, 22 October 2011
KUALA LUMPUR: The Energy Commission has clarified that the bidding process for the Tanjung Bin power station project was conducted five years before it begins operations in 2016 because construction of such a large-scale power plant would require at least five years on a brownfield site.
The project in Johor, which is to develop and operate the 1,000 MW coal-fired power plant, was awarded to Transpool Sdn Bhd, a subsidiary of Malakoff Corp Bhd, via a competitive restricted bidding process conducted by the commission from Nov 15, 2010 to April 15, 2011.
The project is needed to meet the projected demand in 2016 following the cancellation of the proposed submarine cable from the Bakun Hydroelectric Project.
“Greenfield development will require a longer period to undertake the Environmental Impact Assessment (EIA), detailed site identification and assessment.
“Based on the projected economic growth, failure to award such a project on time to achieve commercial operation in early 2016 will result in potential brownouts in the country,” the commission said in a statement yesterday.
It was responding to a recent statement by Petaling Jaya Utara MP Tony Pua.
The commission said the brownfield site option was chosen for the bidding process.
“Following an assessment by the Energy Commission, there are only two suitable brownfield sites that can meet the timeline requirement, and they were therefore short-listed for the bidding process.
“The evaluation of the bid proposals was conducted by a team consisting of officers of the Energy Commission as well as reputable financial, legal and technical international consultants appointed by the Energy Commission,” it said.
It said the tariff and concession period had already been determined through the competitive bidding process, adding that the final tariff submitted by the winning bidder and approved by the Government was very competitive compared with similar projects in the region. – Bernama
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