Announcement of the winner for the Prai CCGT project edges closer

The winners of the bid for the construction of the new Combined Cycle Gas Turbine (CCGT) plant in Prai, Penang, and an extension of the first generation power purchase agreement will be announced next month.

Energy, Green Technology and Water Minister, Datuk Seri Peter Chin Fah Kui said the bid process was conducted via the newly introduced International Competitive Bidding (ICB) standard, to provide the best value to the country and enhance transparency as well as efficiency in the government’s deliverables.

“The competitive bidding will result in a new capacity to be installed at the Prai plant, using the latest gas turbines of significantly higher efficiency, to optimise the use of gas which is more environmentally friendly,” he added.

Speaking at the Fourth Energy Forum, here on Thursday, Chin said the newly developed gas turbines could surpass the 60 per cent efficiency in combined cycle mode to cater for the increasing demand expected by 2017.

The ICB was also used in calling for the selective bidding exercise among the first generation Independent Power Producers (IPPs) and Tenaga Nasional Bhd’s (TNB) ageing plants, he said.

On the electricity tariff to be reviewed in December, the minister said his ministry had presented the paper on this recently to the National Economic Council.”The Cabinet will make the decision and there is nothing on the matter as yet.

“Anytime you revise the gas pricing, there will always be an impact on electricity tariff as the former plays a big role in terms of power generation,” Chin said.The last time the government increased electricity tariffs was in June last year, following an increase, in the natural gas price for the power sector.

Touching on the Selangor water issue, he mentioned that the ministry will definitely reply to the Selangor state government’s recent letter on it, but not in 14 days.

This is because it contains complex matters, including the monitoring policy and specific provision of funds.

Selangor Mentri Besar Tan Sri Khalid Ibrahim had sent the letter on Sept 14 indicating the state’s intention to pursue the water services industry restructuring exercise.

In another development, Chin said the Pahang state government should inform his ministry or the National Water Services Commission if it intends to terminate the raw water supply agreement with Selangor.

It was reported that Pahang might consider cancelling the agreement if Selangor continued to politicise the water issue and had instructed state officials to study the agreement’s terms and conditions.