Amid backlash, TNB says it’s not part of Johor power plant consortium
National electricity provider Tenaga Nasional Bhd (TNB) has distanced itself from the controversial multi-billion ringgit Johor power plant Track 4A, amid a backlash against the plant and Tan Sri Francis Yeoh’s (pic) YTL Power International Berhad (YTL) role in it.
“TNB would like to reaffirm that we have not had any prior discussions with any parties regarding the matter. As of now, we can confirm that we only received the offer letter and refute claims or assumptions that we are already part of the consortium.
“We are evaluating the offer and also our role in this project before concluding if it is favourable for TNB to participate by July 25, 2015,” TNB president and CEO Datuk Seri Azman Mohd told reporters.
YTL, the Johor ruler's SIPP Energy Sdn Bhd and TNB have been awarded the Track 4A combined gas cycle project that could generate up to 1,400 megawatt (MW) of power under a controversial directly negotiated deal.
Azman today received a memorandum protesting against YTL and TNB’s role in the power plant from four unions representing the 34,900 members and TNB employees at its headquarters in Kuala Lumpur.
The unions – Persatuan Eksekutif TNB, Kesatuan Pecantuman Pekerja-Pekerja Tenaga Nasional Bhd, Tenaga Nasional Berhad Junior Officers Union and Persatuan Unit Keselamatan TNB – said YTL had caused massive losses to TNB since it signed the power purchase agreement (PPA) in 1993.
“TNB has not received a single benefit since dealing with YTL in 1993. In fact, the first generation PPA with TNB has placed a financial burden on TNB, as it was forced to pay higher costs for energy than it could produce,” the memorandum read.
“Based on the figures and information we received, it is understood that TNB has paid more than RM20 billion to YTL.
“We oppose and urge TNB to reject any conditional offer given by the EC to the YTL, SIPP and TNB consortium to develop the Track 4A project in Pasir Gudang, Johor.”
Azman told reporters that he would take the unions’ grievances into consideration, but added that it was the Energy Commission (EC) and not TNB that decided whether the Track 4A project was awarded to YTL.
“We take seriously the voice of our people (the staff) who expressed their deep concern over the matter.”
Members of the EC have been on the defensive over the award of the Track 4A power plant through direct negotiation, instead of conducting an open tender.
This latest development is because of Yeoh's comments that Malaysia must do away with crony capitalism and take advantage of its ethnic diversity to gain greater economic achievement and compete globally.
TNB Junior Offices Union president Mohd Roszeli Majid said at a press conference earlier today that the union was disgusted by Yeoh’s “insulting comments towards the government”, and noted with irony that YTL had entered into the Track 4A project through direct negotiation just after criticising crony capitalism.
He expressed concern that should this project go on, other IPPs would follow suit and enter into multi-billion power plant deals through direct negotiation.
“If this happens, there will be a domino effect. If YTL starts, other IPPs will follow. So we must quickly put a stop to this,” said Roszeli, adding that this was the first time the unions had ever submitted a memorandum to TNB.
Roszeli said it also wanted TNB to end all deals with YTL as soon as its concessions expired September next year.
“It is befitting for someone who has betrayed the government and ruler to find job opportunities outside this country,” he said.
“It is the first IPP to exist and it is the first contract to expire. We have to make sure YTL is not given any more electricity projects as we have had bad experience with them.”
The Malaysian Insider reported this morning quoted Barisan Nasional (BN) sources as saying that Putrajaya was making overtures to the Johor ruler to find another partner for the project. – June 16, 2014.
