SHAH ALAM, 8 Apr: The Federal Government has been urged to provide clarification on the move to award the solar plant project tender directly to the 1Malaysia Development Fund (1MDB).
The Member of Parliament for Lembah Pantai, Nurul Izzah Anwar, said that the 50MW solar plant project, involving 500 acres of land in Kedah, was awarded through a direct tender despite 1MDB’s record and expertise is dubious.
“The government must immediately explain why it decided to embark on a direct tender exercise in the case involving 1MDB when SEDA has taken pains in the past to exercise open bidding through its transparent online open bidding systems for energy quota fixed between 1MW and 5 MW in 2012,”
“1MDB’s solar farm initiative will also encroach upon TNB’s space. 1MDB’s foray into solar power will only crowd out TNB and other, smaller solar power players.
Nurul Izzah explained that 1MDB has been on a power hunt of late; beginning on the acquisition of over RM10 billion in power assets at inflated prices, which include the power assets of Tanjong, Jimah and Genting; to the recent successful bid of RM11 billion, 2,000MW coal-fired project; to the the blatant directly negotiated 50 MW solar panel powered project.
In addition, she is dubious about 1MDS’s track record and expertise needed to run solar power projects and a study has to been done to ascertain the impact of such a set up on residents in Kulim.
Izzah added that the cost of the 50 MW solar plant project could cost up to RM900 million; despite photovoltaic prices being on a downward trend and that this is the government’s strategy as part of the subsidy rationalization program.
“The government must explain the reasoning and the lengths taken to accommodate 1MDB’s power appetite, including a directly negotiated tender exercise despite the latter’s less than stellar standing in the financial world,” she said.