Tenaga Nasional Berhad (TNB) will buy over 1Malaysia Development Berhad (1MDB)'s stake in the Project 3B coal power plant, the Energy, Green Technology and Water Minister Datuk Seri Maximus Ongkili confirmed today.
Ongkili told reporters at the Parliament lobby today that TNB is buying over 1MDB's 70% in the project, held through the state investor's energy arm, Edra Global Energy Bhd, for an undisclosed price.
"It's on a willing-buyer-willing-seller basis," he said.
The Cabinet approved the move as the power plant project has been delayed by 1MDB, which faced cash flow problems as it sat on a RM42 billion debt.
"TNB requested that they would like to take over the project," Ongkili said today, adding that the government chose not to go with an open tender because the project was delayed and TNB could do it "fast and at an acceptable rate."
"They have requested a small revision to the tariff because it is six months late and the exchange, rate, too has changed since then," he said.
The tariff rate would be decided by TNB and the government, he added.
1MDB obtained the RM11 billion project in early 2014 in a joint venture with Mitsui & Co Ltd and reportedly beat YTL Power International, TNB and Malakoff Corp in the open tender bid.
Earlier this month, The Star reported that TNB would set aside some RM500 million as equity to start the project as soon as possible. – TMI
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