also.. this. So, my qquestion is... if they are really the one that submitted the lowest, that means they could win (they need to be awarded the project to 100% secure the deal)... to buy YTL power or to buy YTL?hehe
Independent Power Producer (IPP) YTL Power International Bhd is
said to have submitted the lowest price for the 2,000MW coal-fired power plant
under a tender called by the Energy Comission (EC). If it is successful in its bid,
it would mark the comeback of YTL Power into the national electricity scene
after two decades.
According to industry sources, YTL Power's bid of just over 25 sen per
kilowatt hour (kwh) was teh lowest in the tender called under
programme Track 3B. The next closest bid is said to have come from
1MDB which needs to win the job to boost the proposed listing of its
energy division. But its bid is said to be marginally more expensive than
YTL Power's proposal.
However, YTL Power is not in the clear yet as the EC would evaluate
other factors, according to sources. YTL Power's bid may have
compliance issues with its engineering, procurement and construction
(EPC) partner, some industry players said, without elaborating.
Surprisingly, Tenaga Nasional Bhd put in the most expensive bid for
Track 3B, despite previously outbidding the IPP's in earlier tenders.
(Financial Daily)
We are surprised by this piece of news as we had previously ruled out YTL
Power's emergence as one of the winners for Track 3B, given TNB's dominance
and advantages. Secondly, we had expected 1MDB to win the bid, assuming
TNB failed to secure it. However, assuming this is true, we believe this is
positive for YTL Power as it implies that it would continue to be a Malaysian
IPP play post expiry of the PPA's in 2015. While it is not so positive for TNB, we
believe it does not have a significant negative impact on future earnings as at
the end of the day, the cost for it to purchase the power from YTL Power is still
lower than its own bid.
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