Energy, Green Technology and Water Minister Maximus Johnity Ongkili must explain the delay in the construction of the geothermal power plant in Apas Kiri, Tawau, as the federal government had disbursed a RM35 million grant to fund construction costs, said DAP's Sri Tanjong assemblyperson Chan Foong Hin.
This was after Ongkili said the opposition need not harp on the matter as delays in the construction was the loss of developer Tawau Green Energy (TGE).
Chan noted that according to a statement on TGE's website, the developer signed a facilitation fund agreement with the Public Private Partnership Unit of the Prime Minister's Department, under which RM35 million was disbursed to help with construction costs.
"Isn't the RM35 million federal grant an allocation by our BN government? Are you not aware of it?" Chan (photo) asked Ongkili in a statement.
Ongkili had said the delays were the developer's loss, since they had signed an agreement to provide power to Sabah Elecricity Sdn Bhd (SESB), and delays would be an opportunity cost for TGE.
The RM419 million project is reportedly "abandoned' amid ongoing disputes between two major TGE shareholders.
Chan said the outcome of the project was particularly pertinent as the virgin forest at Andrassy was cleared to make way for the plant.
"We have sacrificed our natural heritage in exchange for the first geothermal power plant project in the country. Don't tell us our trees were felled for nothing!" he said.
He added that the project is also led by a foreign company, and urged that the developers' contract be cancelled and passed on to a local firm if they do not meet deadlines.
The plant is scheduled to start operation in June 2018.- Mkini
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