Friday, October 21, 2011

Energy Commission explains bidding process for Tanjung Bin plant

KUALA LUMPUR: The Energy Commission said the bidding process for the 1,000 MW coal-fired power plant in Tanjung Bin, Johor, had to be carried out five years ahead of the commercial operations in 2016 due to the large scale of the plant.

It said on Friday, Oct 21 the development and CONSTRUCTION [] of the power plant required a minimum of five years on a brownfield site and seven years on a greenfield site.

'Greenfield development will require a longer period to undertake the full environmental impact assessment, detailed site identification and assessment including public consultation,' it said in a statement.

Other factors were the site preparation, reclamation and soil investigation and the construction of new transmission and interconnection facilities, coal handling and other common facilities, it said.

The commission had sought to clarify DAP Member of Parliament for Petaling Jaya Utara, Tony Pua's statement on the project, which had appeared in the local newspapers.

'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. Hence, the brownfield site option was chosen for the bidding process,' it said.

The project to develop and operate the plant was awarded to Malakoff Corporation Bhd's subsidiary Transpool Sdn Bhd.

The commission said there was a competitive restricted bidding process which was held from Nov 15, 2010 to April 15, 2011. The project was crucial to meet Peninsular Malaysia's power demand in 2016 after the submarine cable plan lining to the Bakun hydroelectric project was cancelled.

'The evaluation was conducted solely based on the technical and commercial aspects of the bid which, among other, include the proposed tariff for the entire duration of the 25-year concession,' it said.

It added the tariff and concession period had already been determined through the competitive bidding process.

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