TNB to acquire 1MDB's 70% stake in power plant project

  • Nation
  • Thursday, 18 Jun 2015

KUALA LUMPUR: Tenaga Nasional Berhad (TNB) is to take over 1Malaysia Development Berhad’s (1MDB) Project 3B power plant, said Energy, Green Technology and Water Minister Datuk Seri Maximus Ongkili.

He said the Cabinet had approved the deal, which will involved TNB taking over 70% stake held by 1MDB's energy arm, Edra Global Energy Bhd.

"We considered all factors. We could have gone for open bidding because the project is late and there is a need to give a priority to TNB.

"We believe TNB can do it at the rate that is acceptable and fast," he told reporters at Parliament lobby Thursday.

The RM11bil Project 3B involves is a 2,000MW coal-fired plant in Negri Sembilan where the Jimah Power Station is located.

The project was to have been developed under a consortium known as Jimah East Sdn Bhd, which is jointly owned by 1MDB and Mitsui Corporation Limited on June 3 last year.

1MDB owns 70% while Mitsui controls 30% of the project.

Maximus said TNB requested for a "small revision" to the power tariff owing to the delay of the project and changes in currency rate.

However, Maximus said the new rate has yet to be finalised between TNB and the Government.

In the Dewan Rakyat, Dr Ong Kian Ming (DAP-Serdang) raised the issue of 1MDB's proposed 50MW solar farm in Kedah.

He asked Ongkili, owing to 1MDB's cashflow problem, if  1MDB would be able to get loans for the project estimated at RM500mil.

To this, Ongkili said the matter did not arise at the moment and was just mere speculation.

"The ministry will monitor and wait for the report from 1MDB," he said.

When pressed by Ong for 1MDB's business plan on the project, Ongkili said it was a private deal, suggesting that Ong obtained the information from 1MDB.

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