KUALA LUMPUR, Oct 31 – Tenaga Nasional Bhd (TNB) will proceed with the Track 4A power plant at Pasir Gudang and expects to finalise the project cost with the engineering, procurement and construction contractors (EPCC) by early next month, said president and chief executive officer, Datuk Seri Ir Azman Mohd said.

He said the company is also negotiating the shareholding agreement with SIPP Energy Sdn Bhd after sealing a pact with the company in July. “We are going to present the levelised cost to the Energy Commission (EC) and it is up to them to decide whether to continue or not,” he told reporters after the company’s result announcement here today.

The 1,000-1,400 megawatt (MW) gas power plant has a condition set by the EC for the levelised tariff to be comparable to the 1,071 MW Prai combined power plant awarded in 2012. The project was initially awarded to a consortium comprising YTL Power Corp Bhd, SIPP and TNB via direct negotiations, and is estimated to cost between RM11 billion and RM13 billion. But YTL Power later withdrew from the consortium.

On the status of Janamanjung Unit 4 and Unit 5 projects, Azman said it had reached 99 per cent and 19 per cent completion respectively, with the estimated commercial operation date (COD) set for March 31 next year and Oct 1, 2017, respectively. TNB’s hydro power plant in Ulu Jelai is 64 per cent complete and scheduled for delivery in two stages, that is, December 2015 and March 2016, respectively.

Another hydro plant in Hulu Terengganu is 85 per cent ready. It will also be delivered in two stages – in September and December next year. On the capital expenditure (Capex), Azman said TNB would invest RM24 billion for four years, starting from 2014, for distribution and transmission. Chief Finance Officer Fazlur Rahman said the Capex would be funded through internally generated funds and other debt instruments and would contribute to an increase in the company’s debt level which is currently at RM25 billion.

Meanwhile, on the fuel cost pass through (FCPT) mechanism, TNB chairman Tan Sri Leo Moggie said it is the right time now to implement it based on the low oil price currently. He said implementation of the FCPT will not increase TNB’s unit cost, and as such, is unlikely to increase the tariff for the rest of the year.

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