".. 1MDB’s proposed site for the power plant — next to its existing 1,400MW coal-fired power plant in Jimah — means the new plant would be closer to an injection point where the power generated can be channeled into the national grid. In comparison YTL Power had proposed a site in Tanjung, Johor, is reportedly three times farther from an injection point compared to 1MDB’s site, which means a greater distance of transmission in turn leading to higher transmitted energy losses." - 1MDB wins RM11bil Track 3B Power Plant Project, Kinibiz 28 Feb 2013
Where YTL Power went wrong. YB Tony Pua won't be happy with the news. The DAP leader was openly campaigning for YTL to win the project instead of 1MDB simply based on the fact that YTL Power's bid was lower (read my 19.2 posting Tony Pua a YES man?). I don't expect him to take this bad news lying down.
But as the article explains, there are other factors to be taken into account when awarding such a massive project. Even in the best case scenario, according to previous media reports, YTL Power's bid price would end up higher than 1MDB's bid price. Kinibiz also pointed out that YTL Power was also the only bidder whose proposed location was not within the country's major load centres. Industry players have estimated between 2 and 5 per cent transmission losses.
Moral of the story? Politicians should stop making a fool of themselves. They should stick to things they know and which will help them serve the people better. Those corporate boys can more than look after themselves.