Nurul Izzah: Explain Power Project Agreement, Avoid Loss

KUALA LUMPUR, 23 Apr: The Federal Government and Tenaga Nasional Berhad (TNB) have been urged to disclose the contents of the Power Purchase Agreement (PPA) with 1MDB, which involved a 50 MW Solar Power project to avoid the loss of national funds.

The Member of Parliament for Lembah Pantai, Nurul Izzah Anwar, said that this project was done via direct negotiations and the Federal Government’s reason that 1MDB accepted this project because no other company sent a proposal to build a solar power plant, is unreasonable.

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“The government should explain why this project was given directly to 1MDB when SEDA has been working hard to use the open tender system in the quota of between 1 MW and 5 MW in 2012.

“Lately, The Edge reported that TNB signed the PPA with 1MDB, the only direct PPA agreement since 2011,” said Nurul Izzah in a press conference at the PKR Headquarters.

The report added that a company from the United States, First Solar, will receive the contract.

The report added that the RM7000/MW cost, the cost for the 50 MW solar generator, will cost more than RM350 million because Malaysia does not have a solar generator station with a national grid at the moment.

“The report also said that the tariff set by 1MDB is 40sen/kWh and 46sen/kWh. According to industry experts, this rate is too low and should be at 55sen/kWh.

“If the tariff is below 60sen/kWh and at an interest rate of five percent, the interest cost is RM17.5 million for just the EPC (Engineering Procurement and Construction).

She said that this will only leave RM24.5 million for operating costs and the cost for the lease of the 250 acre land.

“If this is the case, this project may bring a loss to the country,” added Nurul Izzah.

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