The tender documents for the construction and commissioning of two 1,000 MW gas-fired power plants code-named Project 4B are being prepared.
According to Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili, the tender documents outlining the project specification requesting are being done in the same way as previous exercises.
“The same methodology is being applied in the preparation of tender just like project 3B,” he told StarBiz recently.
In reference to the most recently concluded competitive tender exercise for the construction and commissioning of a 2,000 MW coal-fired power plant under Project 3B, Ongkili said there were no changes in the terms of the tender mid-way into the exercise.
“There was no changing of goal post in the request for proposal (RFP) and bidding process for Project 3B,” he said.
However, a major consideration before the tender documents can be wrapped up is determining the locations for the power plants.
“Three to four locations have been identified and we are in the midst of evaluating those sites as we prepare the tender documents. All these take a while, after which we will post the RFP. It is a 10-month progression,’’ he said.
Ongkili declined to say where the sites under evaluation were. However, one possible site could be near the Prai gas-fired power plant in Penang.
Ideally, the site of the new plant should be near an existing gas-fired power plant and that it should have facilities such as cooling water and gas pipelines.
It should also be near transmission lines so that it’s easier to connect the power into the national grid.
Though the plan is to have the gas-fired plant commissioned by 2020/21, the Government is also looking into the possibility of bringing the commission dates forward as demand for electricity continues to grow in the country.
On the controversial Project 3B and allegations that the award was not done in a fair and just manner, Ongkili said everything was done above board.
“We are consistent with our RFP,’’ he said.
The Energy Commission selected the consortium of 1Malaysia Development Bhd-Mitsui Co Ltd (1MDB-Mitsui) to build, own and operate the 2,000 MW power plant in Jimah, Negri Sembilan at a levelised tariff of 25.33 sen a kWh.
1MDB was chosen over early favourite YTL Power International Bhd.
“The 1MDB-Mitsui Consortium met the requirements spelt out in the RFP,’’ he said.
Project 3B involves the construction of a new 2000 MW coal-fired power plant that will be commissioned by 2018/19.
Since there were allegations that the RFP was changed, the commission has clarified in its statement dated March 7 that the proposal submitted by the YTL-SPP consortium did not comply with Part 2 (technical specifications) of the RFP document for Project 3B.
“They did not meet the requirements as we wanted a technology that is proven and in operation. That is why their proposal was seen as non-compliant and the project was offered to the next best bidder,” Ongkili said.
