The power plant Project 3B, which 1MDB has a 70% stake in, will be taken over by Tenaga Nasional Berhad. – The Malaysian Insider filepic, May 9, 2015.
Tenaga Nasional Berhad (TNB) has taken over the 2,000 megawatt coal-fired power plant, known as Project 3B, from troubled state investment firm 1Malaysia Development Berhad (1MDB), The Star reported today.
The English language daily said TNB was given approval to take over the greenfield power plant because the project needed to get off the ground quickly, since the engineering, procurement and construction (EPC) contract had already been awarded and the equity needed to start coming in immediately.
1MDB and its partner Mitsui & Co Ltd won the RM11 billion power plant project in a controversial open tender in February, beating YTL Power International, Tenaga Nasional Bhd and Malakoff Corp Bhd.
Citing unnamed sources, The Star said TNB had already started talks with Mitsui & Co Ltd over the power plant, as well as engineers from Toshiba Corp, IHI Corp and the Hyundai Group, which is the consortium that won the EPC contract for the project.
TNB will set aside some RM500 million as equity to start the project as soon as possible, said the daily.
1MDB, which owns a 70% stake in Project 3B, has faced trouble taking it off the ground due to cash flow issues.
In February, the debt-ridden 1MDB called off plans to sell up to RM8.4billion of Islamic bonds, or sukuk, needed to fund Project 3B, Reuters reported.
Plans to raise RM8.4 billion via a debt programme led by Japan Bank for International Cooperation reportedly fell through last year.
- TMI
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