“The plant, potentially costing RM11 billion, is scheduled to commence operations in stages in October 2018 and April 2019,” it said.
‘YTL leads race for power plant contract’
YTL Power International Bhd is the front-runner to win a multi-billion ringgit contract to build a power plant, AmResearch said in a report.
AmResearch advises investors to hold YTL shares, which the research firm values at RM1.86 apiece, as it expects the Energy Commission to announce the winning bidder by next Monday.
“The plant, potentially costing RM11 billion, is scheduled to commence operations in stages in October 2018 and April 2019,” it said.
YTL is seen as the preferred bidder, given that its notional adjusted tariff of 25.2 sen/kWh was the lowest bid.
YTL had proposed for the project to be built in Tanjung Tohor, Johor, together with SIPP Power Sdn Bhd, AmResearch said.
The research house also noted that if YTL wins the project, as expected, incremental earnings alone could come in at RM260 million, based on YTL’s 60 per cent ownership in the venture.
Read more: ‘YTL leads race for power plant contract’
