KUALA LUMPUR (Dec 15): Malakoff Corp Bhd has accepted a conditional award from the Energy Commission for a three-year extension for the operation of its indirect wholly-owned unit Port Dickson Power Bhd's power plant in Negri Sembilan.
 
The award is subject to the conclusion of Malakoff's discussions with Tenaga Nasional Bhd (TNB) and Petroliam Nasional Bhd (Petronas) or other gas suppliers on the new power purchase agreement (PPA) and gas supply agreement (GSA), according to the group’s filing with Bursa Malaysia.
 
Malakoff said the extension, while not expected to have any material impact on its earnings and net assets for the financial year ending Dec 31, 2015 (FY15), is expected to contribute positively to the same, thereafter.

According to news reports in October, quoting Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili, the government had awarded short-term extension to a few independent power producers (IPPs), through a competitive bidding process.

He had said then that there was an expansion shortage with some project delays, so the ministry opened the extension application for bidding.

The winners of the extension are YTL Power International Bhd and Malakoff Corp Bhd and the contract had been renewed for about three years, Ongkili had said after officiating the 33rd Asean Ministers on Energy Meeting and Associated Meetings.

The group closed 1 sen or 0.62% lower at RM1.60 today, after some 5.46 million shares were done, for a market capitalisation of RM8 billion.
 
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