PETRONAS ANGER AT TIDCO

Vol 3, PW 16 (01 Sep 99) News in Brief
     

Petronas of Malaysia has reacted angrily to a request by the Tamil Industrial Development Corporation (TIDCO) for it to renew its Earnest Money Deposit (EMD), made at the time of bidding for the 2.5m t/y LNG cum power project at Ennore.

Petronas emerged L-2 in the tender which was won by the Siemens-led Dakshin Bharat Energy consortium. Petronas is widely known to be unhappy at the selection procedure.

TIDCOs move is a safeguard against the possibility that it fails to reach agreement on an SPA with Dakshin Bharat and has to begin negotiations with L-2. Other bidders (Shell, Enron) are believed to have agreed to renew their EMD.

This report learns Petronas is demanding its money back from TIDCO as it is no longer interested in the project. TIDCO, however,insists it will refund the money when it has reached final agreement on an SPA with Dakshin Bharat.

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