RPower, GMR to bid for Singapore plants

The Singapore government-controlled Temasek Holdings, which controls over 90 per cent of power generation and distribution in Singapore, will soon call for bids to privatise the two companies. The Indian companies are exploring various options to bid for these assets, said sources familar with the developments.

Spokespersons of both Reliance Power and GMR Infrastructure declined to comment.

Last year, a joint venture between Macquarie Group of Australia and GMR Infrastructure and Reliance Power were among the suitors for Tuas Power, the first of the three power generation companies which Temasek put up for sale as part of its privatisation plan.

Tuas was bought by SinoSing Power Pte Ltd, a wholly-owned subsidiary of China's largest power producer Huaneng Group, for $3 billion.

Tuas, which accounts for 25 per cent of Singapore's power manufacturing market, has a capacity of 2,670 Mw. The other bidders for Tuas were Marubeni Corporation of Japan, Hong Kong Electric Holdings Ltd and Tanjong Plc of Malaysia.

Temasek had said earlier that the privatisation of three power projects would be completed before 2009.

Senoko Power generates about 3,300 Mw and PowerSeraya, with annual revenues of about S$2.6 billion in 2007, has 3,100 Mw of installed capacity, with many power generating assets located at Jurong island, Singapore's oil, gas and petrochemicals hub. It controls 28 per cent of Singapore's energy market and has also diversified into oil storage, desalinated and cooling water solutions, energy trading, fuel management and bunker fuel blending and tank leasing.

The electricity market in Singapore was liberalised in 1998 to allow a competitive wholesale and retail market allowing consumers to choose their own energy retailer.

POWER PLANNING

PowerSeraya and Senoko Power account for more than 60 per cent of power produced in Singapore

Temasek to call for bids to privatise the two companies under Singapore's new power policy

RPower and GMR were among suitors for Singapore's Tuas Power but bid was won by a Chinese company

Privatisation programme to be completed by 2009, said Temasek