KUALA LUMPUR: Tadmax Resources Bhd's unit has received the government's approval for it to go ahead with the development of the 1,000MW to 1,200MW combined cycle gas and turbine power plant in Pulau Indah.
The company said on Wednesday Tadmax Indah Power Sdn Bhd had received a letter from the Energy Commission that the government had agreed to go ahead with the plant.
In July 2018, Tadmax had signed an MoU with Selangor state-linked company Worldwide Holdings Bhd for the development of a 1,000-1,200 MW combined cycle gas turbine power plant in Pulau Indah.
Tadmax had then said that subject to the Energy Commission’s approval, Worldwide intended to secure 30% equity interest in the project company, Tadmax Indah Power Sdn Bhd (TIP).
“The collaboration on TIP’s equity in the MoU between Tadmax and Worldwide is subject to and to be in accordance with the Selangor government’s directives, ” it said then.
On Aug 31 this year, StarBizWeek reported Tadmax's power plant in Pulau Indah, Selangor and another in Kedah were back under the spotlight. The power plant in Kedah, which is at the planning stages, is privately held and said to be linked to the state royalty.
The status of both power plants have been uncertain since May 2018 after the Pakatan Harapan government took control of Putrajaya. Since May last year, Tadmax has seen a set of new shareholders coming into the picture.
Tadmax's deputy chairman Datuk Seri Anuar Adam, who used to be the company's single largest shareholder and managing director, has cut his stake to 2.79% currently.
A year earlier, Anuar owned 26.43% in the company, held with his deputy and son Datuk Aldillan Anuar.
On Feb 28 this year, Aldillan resigned from Tadmax's board of directors, saying he intends to "pursue other business ventures".
Currently, the single largest shareholder of Tadmax is Datuk Kok Boon Kiat with a 8.21% stake.
Four power plant contracts were cancelled in July 2018 following the Energy, Green Technology, Science and Climate Change Minister Yeo Bee Yin's move to review the country's power reserve and supply situation.
The projects are the 700MW power plant by Malakoff Corp Bhd and Tenaga Nasional Bhd (TNB) in Kapar, the 1,400MW power plant by Aman Majestic Sdn Bhd and TNB in Paka, Terengganu, and the 300MW combined gas engine power plant by Sabah
Development Energy (Sandakan) Sdn Bhd and SM Hydro Energy Sdn Bhd at the Palm Oil Industrial Cluster in Sandakan.
The 400MW solar energy quota to Edra Power Holdings Sdn Bhd was also cancelled.
Currently, Malaysia already has an electricity reserve margin of 35%. It was closer to 40% two years ago.
A quick check on the Malaysia Energy Information Hub portal shows that as of end-2017, the country's total installed electricity capacity stood at 33,528.08MW.
However, the maximum demand was only at 22,217MW in the same year.