KUALA LUMPUR, June 18 — The Cabinet has approved Tenaga Nasional Bhd’s (TNB) request to take over the Project 3B power plant from debt-laden strategic fund 1Malaysia Development Bhd (1MDB), the Energy, Green Technology and Water Ministry said today.
According to minister Datuk Seri Maximus Ongkili, there was no open bidding for the independent power producer (IPP) project as there is a priority to finish the delayed project and Putrajaya has deemed TNB capable of achieving that.
“So we considered all factors, we could have gone for open bidding ... (But) because the project is late, there is a need to give priority to TNB because they can do it at a rate that is acceptable and they can do it fast,” Ongkili told reporters outside Parliament.
Ongkili also confirmed that TNB has requested for a “small revision” to the power tariff as the project was already six months late and the exchange rate has already been changed since.
“But the rate is between TNB and the government and that is yet to be finalised,” said Ongkili.
Project 3B is a 2,000MW coal-fired power plant adjacent to the Jimah Power Station in Negri Sembilan, another power project in which 1MDB has a 75 per cent stake.
The RM11 billion project was awarded to the consortium known as the Jimah East Power Sdn Bhd that is co-owned by 1MDB and Mitsui Corporation Limited on June 3, 2014
1MDB owns 70 per cent of Project 3B, with the rest owned by its Mitsui.
1MDB reportedly has RM42 billion in liabilities and previously missed deadlines to pay off interests on its debts.
The state-owned strategic investment firm is currently the subject of an investigation by the Auditor General’s Department and in line for further scrutiny by Parliament’s Public Accounts Committee.
