Friday, February 21, 2014

Project 3B Awarded To 1MDB Despite Higher Bid

The award of “Project 3B”, a 2,000MW coal-fired power plant to 1MDB despite its
higher bid is nothing less than a backdoor bailout for the financially stricken

The Edge Financial Daily reported on its front page yesterday that “1MDB gets 3B power project”.
The paper confirmed that “the Energy, Green Technology and Water Ministry (KeTTHA) has
notified the Cabinet that the 2,000MW coal-fired power plant known as Project 3B is to be
awarded to 1Malaysia Development Bhd (1MDB), according to sources”.

Tuesday, February 18, 2014

Energy Commission Awards Power Plant Project To 1MDB Instead Of Lowest Qualified Bidder

The Cabinet must prioritise the interest of the rakyat and not the profits of its
companies when deciding on the “winner” of the power plant projects.

It has been reported by The Edge Financial Daily over the past 2 weeks that the Energy
Commission has decided to award the latest 2,000MW coal-fired power plant to 1Malaysia
Development Bhd (1MDB).

The paper reported that “according to industry sources, the board of the Energy Commission (EC)
has decided to propose 1MDB as the preferred bidder for the RM11 billion planting­up exercise to
the Ministry of Energy, Green Technology and Water”.

This is despite the fact that the bid submitted by 1MDB at 25.65 sen per kWh is higher than that
submitted by another tenderer, YTL Power at 25.23 sen per kWh. The difference of 0.42 sen per
kWh is estimated to constitute a difference of RM2 billion over the 25 year concession period.
What is more disturbing is the fact that based on documents sighted by The Edge, “the EC’s
technical evaluation committee had recommended YTL Power as the preferred bidder for the
tender in December last year”.