Higher tariff for Tenaga lightens Track 3B fears

KUALA LUMPUR: CIMB Equities Research is positive on Tenaga Nasional after the power giant received a letter of invitation from the Energy Commission (EC) to submit a proposal to participate in Track 3B project, with a final tariff that is 1.34 sen/kwh higher than the initial tariff.

It said on Monday the higher tariff is positive for Tenaga as it could translate into a present value of RM2bil, which should be more than enough to offset the rise in construction cost due to the weaker ringgit. This should also ease concern that Tenaga may be taking over the project at a loss.