SYNOPSIS

Areas of Coverage
1. Time value of money: future value, present value of money.
2. Some terms in economics or financial dealing you may come across in future.
3. Discount rate.  Bringing future stream of moneys to one common reference time for evaluation.
4. Basic concepts of levelized costing of future steam of costing.  Levelized pricing and pricing with escalation.
5. Internal rate of return. The use of IRR in your daily activities and in some areas in stock market.  Examples of detecting opportunities in the stock market which could potentially make you some pocket money.
6. Using of IRR and XIRR in spreadsheet.
7. Evaluating competing tenders. Effect on evaluated tender results due to:
      a) timing of payments,
      b) if lifetime operating costs is added to tender pricing, and
      c) sensitivity to tender price if disbursements are grouped within yearly period. Use of NPV and XNPV in spreadsheet.
8. Use of payback period, discounted payback period and internal rate of return approaches for assessing of investments.  Potential drawbacks of payback period and IRR methods when assessing your investments.
9. Tricks that could be use to your advantage when tendering: if you understand and know how the evaluation methodology is to be carried out.
10. How to price your product under
      a) take-or-pay concept, and
      b) capacity usage payment and variable off-take payment. Illustrations of how each pricing concept is calculated.
11. Calculating the return of your investment on a privatized BOO (or BOT) project. The effect on your return of your investment when leveraged with borrowing. Danger of fixed pricing when input costs are volatile.


BIODATA OF THE SPEAKER

Ir. Dr. Philip Tan has involved himself with the electricity power industry for the last 45 years. He is involved following activities and in areas related to energy, electric power and engineering:
1. Member Board of Commissioners of the Energy Commission of Malaysia since appointment from 1st September 2009.
2. Current Chairman of the Board of Governors, Montfort Boys Town.
3. The past President of Penjanabebas (the Association of Independent Power Producers of Malaysia) for three terms. However no longer associated with Penjanabebas or any IPP after appointment as Member Board of Commissioners of the Energy Commission of Malaysia.
4. Council Member of the Institution of Engineers Malaysia (2008/2009, 2009/2010 and 2010, 2011),
5. Member of the Energy Consultative Panel.
6. Past Member of the Advisory Council to Institute of Energy Policy and Research (IEPRe).
7. Past committee member of Energy Council of Malaysia,
8. Member of SIRIM’s Technical Committee on Petroleum and Gas Measurement,
9. Former Member of the Steering Committee Malaysian Electricity Supply Industries Trust Account for Malaysia Electricity Supply Industry Trust Account (MESITA) before appointment Member Board of Commissioners of the Energy Commission of Malaysia.
10. Past Member the Technical Committee for Malaysia Electricity Supply Industry Trust Account before appointment as Member Board of Commissioners of the Energy Commission of Malaysia
11. Former member of Board of Trustees for Cancerlink Foundation,
12. Past Member of Malaysian Productivity Corporation (MPC) Utility Consultative Panel for establishing benchmarking KPIs for the various types of power generating plants,
13. Member of Federation of Malaysian Manufacturers (FMM) Energy Management Committee,
14. Member of the Steering Committee of Energy Efficiency Master Plan headed by Ministry of Energy, Green Technology and Water.
15. Past Member of Industrial Advisor Panel to University Tunku Abdul Rahman for Engineering Courses.
16. Past Member of Industrial Advisor Panel to Asia Institute of Medical Science and Technology (AIMST) for Engineering Courses (particularly in Electrical and Electronic Engineering).

Dr Philip Tan was a sponsored student of National Electricity Board (NEB), now Tenaga Nasional Berhad (TNB) and graduated from University of Malaya with Bachelor of Engineering (1st Class Honours).

Dr Philip Tan started his working career with NEB in March 1969 and was attached to the Prai Power Station until September 1970 when he left to pursue his Doctor of Philosophy at University of Southampton, England. He is a registered Professional Engineer, a Chartered Engineer, Fellow of the Institution of Engineers Malaysia, a Member of Institution of Mechanical Engineers UK.

Upon completing his Ph.D., he rejoin NEB in January 1974. Dr Philip Tan opted for optional retirement from TNB in 1 January 1996 to join Genting Sanyen Power Sdn Bhd initially as Senior General Manager, subsequently as Executive Vice President and finally then as Technical Direction (Power).