KUALA LUMPUR: The memorandum of understanding (MoU) among Laos, Thailand, Malaysia and Singapore (LTMS) on the Power Integration Project (PIP) will not be signed during the 33rd ASEAN Ministers On Energy Meeting (AMEM) due to certain reservations at the Singapore level, said Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili.
Ongkili said he is convinced the MoU would be inked in the next six months.
"For now, Singapore needs more time because they need to go through a transparent and competitive bidding process. This PIP pilot project is carried out in two phases, where under phase one Laos, Thailand and Malaysia can embark on this project with Malaysia buying the proposed 100 megawatts from Laos and Thailand," he said.
Ongkili was speaking to reporters after delivering his speech at the opening of the 33rd ASEAN Ministers on Energy Meeting and Associated Meeting (AMEM) in Kuala Lumpur on Wednesday.
The project aims to explore cross-border power trade involving LTMS, endorsed during the 32nd AMEM held on Sept 23, 2014, in Vientiane, Laos.
Ongkili said the multilateral transaction would be easier to conclude as the electricity utilities in Laos, Thailand and Malaysia are vertically integrated and only a power puchase agreement (PPA) needs to be signed.
Asked on the recent announcement by Tenaga Nasional Bhd
(TNB) on the expiry of the PPA with YTL Power Generation Sdn Bhd, Ongkili said the Government has extended the PPA to three companies through a competitive bidding process.
"There was an expansion shortage with some project delays and so we open for bidding for those asking for extension at open pricing.
"The winners for the extension are TNB, YTL and Malakoff and the contract is renewed for about three years," he said. - Bernama
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