By Danial Dzulkifly
SHAH ALAM, Nov 23 – The Selangor state government has conducted a comprehensive open tender process in the selection of YTL Power International Bhd (YTL Power) as a strategic partner alongside KDEB Waste Management Sdn Bhd (KDEBWM) for the waste-to-energy (WTE) plant in Rawang.
State executive councillor for local government Ng Suee Lim said the decision made for the RM4.5 billion project follows a thorough review and strict adherence to technical requirements based on the report and recommendations submitted by an evaluation committee made up of experts from public universities.
He said the board of directors of KDEBWM approved the appointment of YTL Power as their strategic partner for the development on December 16, 2021.
“The partnership with YTL Power was based on a thorough evaluation process and strict adherence to technical standards.
“The procedure ensures that the selected company fulfills the high standards and requirements necessary to execute the project successfully.
“The decision reflects a commitment to quality, efficiency, and reliability when selecting a (strategic) partner capable of delivering on the project’s objectives,” he told the state assembly when responding to a question by Gombak Setia assemblyman Hilman Idham on the procedure in selecting YTL Power for the WTE project.
Ng said that the stringent tender process initiated on November 12, 2019, had attracted 38 companies, including international bidders.
The process involved technical assessments and on-site evaluations of WTE facilities abroad and the narrowing down the field to five public-listed companies.
Meanwhile, Hilman also inquired as to what safety measures the state government had taken to ensure that, given the financial strength of both companies, KDEBWM is not “consumed” by YTL Power.
Ng responded that the terms of the agreement would be closely examined to safeguard the state government’s interests through KDEBWM and that a “win-win” outcome would be reached for all involved.
“The agreement would detail matters regarding the obligations of KDEBWM and YTL Power, including issues of capital, profits, losses, power, responsibilities, and dispute resolution, to name a few.
“The state government is optimistic that the development of the WTE facility through the public-private partnership (PPP) model between YTL Power and KDEBWM will help the state government manage waste disposal more effectively and sustainably,” he said.
The Sultan Idris Shah Green Energy (SISGE) Plant project will be constructed on 245 acres of land to process municipal waste from several areas.
The construction of the first phase of the SISGE Plant is expected to start in Gombak next June.
When completed, it could burn 2,400 tonnes of garbage daily and generate 130.5 MW of electricity.
