Rawang WTE incinerator strategic partner underwent rigorous evaluation, Selangor assembly told

Local communities should thus focus on projects that re-educate the younger generation on the underlying principles in waste management that eventually lead to the establishment of WTE plants. — Bloomberg

SHAH ALAM: YTL Power International Bhd (YTL) was appointed as the strategic partner of KDEB Waste (KDEB) for the waste-to-energy (WTE) incinerator plant project in Rawang following from a stringent evaluation process, says Ng Suee Lim.

The Selangor local government, new village development and tourism committee chairman said that another 38 companies were also part of the evaluation process.

In this partnership, both companies will be setting up a RM4.5bil plant with a proposed capacity to handle 2,400 tonnes of municipal waste with a gross generating capacity of 58 megawatts (MW) of electricity per day.

YTL generates and sells power as an independent power producer to Tenaga Nasional for uploading onto the national grid.

In answering Muhammad Hillman Idham (PN-Gombak Setia) on the selection process, Ng said the selection process began on Nov 12, 2019, with a request for proposal which was advertised in the mass media.

“The 38 companies who indicated their interest in the project were comprehensively evaluated by a committee of subject matter experts from public universities.

“Fourteen companies were identified in the initial selection process. From this number, five public listed companies made it into the final list,” Ng told the Selangor state assembly sitting.

He added that KDEB’s board of directors approved the selection of YTL as its strategic partner on Dec 16, 2021 after taking into consideration their reputation, experience, expertise in the field of energy and the company’s strong financial standing.

“The directors had also found their suggestions on the use of technology to be in line with characteristics that were typical to local municipal rubbish,” he said.

To ensure this partnership will benefit the state in terms of effective and sustainable rubbish disposal, Ng assured that the state government will be sure to go through the terms of this joint venture agreement with a fine-tooth comb. Details like obligations of the two companies in terms of capital, profit, losses, organisation hierarchy, responsibilities and dispute resolution will be listed in the agreement to ensure a win-win situation for both parties.

“The project price tag will cover a span of 10 years involving four phases. At this point, we are still waiting for the environmental impact assessment report,” said Ng.

Acknowledging that the building of the plant is taking place in a residential area with a population of 150,000, Ng said KDEB will be carrying out engagement programmes to answer any objections or concerns from non-governmental organisations as well as residents groups.

“Incinerator is the wrong word to use. This is not old technology where the sole means of disposing of trash is through burning. It is just one of the processes to obtain electricity. Countries using this technology include Britain, Switzerland, China and Singapore, which has 20 WTE plants,” said Ng