PETALING JAYA: 1Malaysia Development Bhd (1MDB) has reportedly shortlisted several foreign parties, including Qatar’s Nebras Power QSC, Hong Kong-listed CGN Meiya Power Holdings Co and Saudi Arabia-based ACWA Power International for the sale of its power generation arm, Edra Global Energy Bhd.
Tenaga Nasional Bhd
(TNB) has also been selected to participate in the sales of 1MDB’s power plants, according to a report by Bloomberg.
The report quoted sources as saying that the assets may fetch an equity value of as much as RM8bil.
The Bloomberg report also noted that foreign bidders might be restricted to owning no more than 49% of the plants and would be encouraged to team with a local partner, unless they seek an exemption.
1MDB had yet to revert to StarBiz queries on whether it had applied for a waiver to sell its power assets to foreigners and a confirmation on some of the bidders shortlisted.
The Energy Commission said it had referred StarBiz queries to the Energy, Green Technology and Water Ministry.
The ministry has yet to reply.
On Sept 7, 1MDB said it had already shortlisted four parties for the final bidding stage for the sale of Edra Global but it did not disclose the names.
1MDB is a wholly owned subsidiary of the Finance Ministry and is facing cash flow problems with debts of almost RM42bil.
It has assets of more than RM51bil, which are mostly in the form of land for development.
1MDB plans to sell Edra as part of its restructuring to reduce its debts.
Edra has five domestic and eight international power plants with total capacity of 5,500MW that are estimated to be worth RM12bil collectively.
In July, TNB had bought Edra’s 70% stake in Project 3B or a 2,000MW coal-fired plant in Jimah, Negri Sembilan, for RM46.98mil.
Last week, StarBiz reported that Edra Global has invited parties to build a new power plant to be located in Alor Gajah, Malacca.
In an advertisement, Edra stated that it was inviting “prospective applicants to express their interest in participating in a tender exercise for the design, engineering, procurement, construction and commissioning (EPC) of a 1,800MW to 2,400MW combined-cycle gas turbine (CCGT) power plant in Malaysia for Edra and/or its nominee”.
Edra’s advertisement said the power plant project would utilise advanced gas-turbine technology to realise the highest thermal efficiency consistent with the expectation of the power industry.
According to its website, CGN Meiya Power is a diversified independent power producer in Asia in terms of fuel type and geography, with a portfolio of wind, solar, gas-fired, coal-fired, oil-fired, hydro, cogeneration and fuel cell power generation projects and a steam project in China and Korea.
ACWA Power is a developer, investor, co-owner and operator of plants with a generation portfolio of 15,731 MW of power and 2.37 million m3/day of desalinated water with an investment value in excess of US$23bil.
Meanwhile, the Doha-based Nebras Power was established in 2014 and has the backing from Qatar Investment Authority through a 20% stake held by Qatar Holding LLC.
Nebras Power said on its website that it is making targeted acquisitions in South-East Asia, Europe, and MENA region, as well as forming major energy services partnerships.
Already a subscriber? Log in
Get 20% OFF The Star Digital Access
Cancel anytime. Ad-free. Unlimited access with perks.
