PKR wants Putrajaya to explain award of solar power plant contract to 1MDB
PKR today demanded that Putrajaya be transparent over the awarding of an energy deal to 1Malaysia Development Bhd (1MDB), given that the state investment fund is shrouded in controversy.
Party vice-president Nurul Izzah Anwar (pic) said direct negotiations were only allowed in three areas – military matters, national security and proprietary products.
"It is clear that the direct award by Putrajaya to 1MDB for a 50MW solar power plant does not fall into any of these categories," said the Lembah Pantai MP.
"The Energy, Green Technology and Water Ministry said the contract was awarded to 1MDB because no other companies had submitted a proposal to build a solar power plant."
Nurul Izzah said this was an unacceptable answer from Putrajaya, pointing out that it should be transparent over the direct awarding of the contract to 1MDB.
On April 14, Tenaga Nasional Bhd announced that it had signed a power-purchase pact with 1MDB on the construction of a solar power plant, according to a Reuters report.
The agreement entails the state investor's unit 1MDB Solar Sdn Bhd to design, construct, own, operate and maintain a 50MW solar photovoltaic energy facility in Kedah, the report said, quoting a press statement from Tenaga.
Nurul Izzah said financial daily The Edge had recently reported that TNB had signed a Power Purchase Agreement (PPA) with 1MDB.
"This is one of the few PPA agreements signed in direct negotiations since 2011," she said.
"But the details of the agreement have not been made public and negotiations appear to be shrouded in secrecy."
She said TNB should make the agreement available for public scrutiny.
"TNB is a government-linked company and has a responsibility to its shareholders and the rakyat," Nurul Izzah said.
"It should not come to a stage when TNB cannot carry the financial burden anymore and passes it down to the taxpayers.
"The rakyat have suffered enough with the ludicrously lopsided agreements awarded to independent power producers (IPPs)."
Nurul Izzah said direct negotiations which were not raised in Parliament often brought a host of problems closely linked to cronyism, graft and embezzlement.
"Cost spiral out of control and companies which are better qualified to execute the projects are more often than not, left out in the cold."
Nurul Izzah said the era of clandestine dealings and secretive deals was over.
"The rakyat want to know how their money is being spent, they want transparency, efficiency, justice and value for their tax ringgit." – April 23, 2014.
