KUALA LUMPUR (Oct 8): Tenaga Nasional Bhd is expected to be the front runner for the 1,000 mega watt (MW) to 1,400MW Prai power plant project while Genting Sanyen Power Sdn Bhd and Segari Energy Ventures Sdn Bhd are to win power pact extensions, analysts said.
The Energy Commission (EC) will be announcing the preferred bidder for the construction of new cycle gas turbine plant as well as the results of selective bidding exercise among first generation Independent Power Producers (IPPs) and Tenaga on Tuesday.
Tenaga, Sime Darby Bhd, 1Malaysia Development Bhd (1MDB) and CI Holdings Bhd are among the 33 companies that had bid for the power plant.
The Edge Financial Daily had reported in July 2012 that Tenaga and a consortium of Pendekar Power Sdn Bhd and Mitsui & Co Ltd have put in the lowest bids for the new cycle gas turbine (CCGT) power plant, quoting sources.
Pendekar Power comes under the umbrella of Powertek Bhd, whose parent Tanjong Energy Holdings Sdn Bhd was recently bought over by 1MDB. 1MDB had also bought over Genting Sanyen just months after the purchase of Powertek.
Meanwhile, the frontrunners for the power purchase agreement (PPA) extension are said to be Genting Sanyen and Malakoff Corporation Bhd's Segari Energy.
"Based on the transaction price by 1MDB (for Genting), which was done at 14 times price-to-earnings, and the fact that the PPA expires in four years' time, suggests that they are confident that their bid for extension was quite competitive.
"This leaves another (a capacity) 1,300MW, which will likely go to Malakoff's Segari as it is the only Combined Cycle plant of such size. If they win this, it'd be good investment story for Malakoff's IPO," said an analyst.
The PPA extension, which will be for another five or 10 years from 2016/2017, is subjected to the new rates that Tenaga and independent power producers (IPP) have offered to the government versus the current tariff stipulated in the existing PPAs.