The RM 3 billion “surprise award” of Gas-Turbine Power Plant “Project 4A” to YTL Power, SIPP Energy Sdn Bhd and Tenaga Nasional Bhd consortium is proof that the Mahathir era cronyism is alive and well, said Petaling Jaya Utara MP Tony Pua. 

Indicating that since YTL Power was edged out by 1MDB to be awarded the 2,000MW coal-fired power plant 3B project in February 2014, Pua explained that the 4A award was meant to placate YTL Power as well as SIPP Energy who lost an earlier bid for contracts from the Energy Ministry. SIPP Energy Sdn Bhd is a company associated with the Sultan of Johor. 

“This time, the award was not only directly negotiated, the terms of the award was vague, unspecific and flimsy, as if it was conducted in an absolute hurry.  Neither the size of the plant was not fixed nor was the exact tariffs finalised,except to say that it must be “comparable to the last tender exercise”,” Pua said. 

Yesterday, TNB had attempted to duck out of responsibility in the project, saying that no prior discussions were had with any parties regarding the matter. TNB CEO Azman Mohd had refuted claims of being part of the consortium. 

“It is shocking how the Energy Commission has proceeded to make an award for a 20 year concession to a group of companies that didn’t even know that they are going to be working together!” said Tony Pua. 

Calling the suspicious awarding of the 4A award a “circus” by the Federal government, Tony said that the government was rewarding the consortium for keeping mum about the 1MDB bailout.

“We will take good care of you, even at the expense of the rhetoric behind Najib’s ‘New Economic Model’ 

“As long as you scratch my back, I will continue to scratch yours,”said Pua. 

In February this year, the Federal Government bailed out 1Malaysia Development Berhad (1MDB) with the award of a RM11 billion 2,000MW coal-fired power plant in February 2014 despite the company not submitting the lowest tariff for the tender exercise which attracted 7 participants. Though YTL Power had submitted a qualified and cheaper competing bid compared to 1MDB to supply electricity to TNB, 1MDB was awarded the project. According to Tony Pua, the electricity tariffs would be raised as a result of the 1MDB bailout.

“When the electricity tariffs for consumers are “forced” to be raised in the near future, the Prime Minister Dato’ Seri Najib Razak will just deny all culpability by the Government has “no other option” but to do so,” said Tony Pua.  -The Rocket