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Direct award - a step backwards for Malaysia's power sector?

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Report summary

In an unexpected turn of events, on 31 May 2014, the Energy Commission (EC) awarded the Track 4A combined cycle project through direct negotiations to SIPP Energy, with the participation of YTL Power and TNB as consortium members. The EC has cited energy security as the reason for the direct award. Recent blackouts in Malaysia are used to support this announcement and the need to fast-track the project to 2018.  Is this a convincing justification for the EC’s decision for a direct award?  

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    Direct award - a step backwards for Malaysia's power sector?

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  • Power capacity: supply-demand gap

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