GOVERNMENT CANCELS FOUR IPP PROJECTS, ‘SAVES RM1.26 BILLIONʼ
Govt will save RM1.26b in electricity supply to consumers, says minister
THE 700 megawatt (MW) power plant project between Malakoff Corporation Bhd and Tenaga Nasional Bhd (TNB) in Kapar, Selangor, is among four independent power producer (IPP) projects cancelled by the government.
Energy, Technology, Science, Climate Change and Environment Minister Yeo Bee Yin said the projects were cancelled because of non-compliance of conditions stipulated in the offer letter to the developers.
“Other projects are the 1,400MW power plant by Aman Majestic Sdn Bhd and TNB in Paka, Terengganu; the 300MW combined gas engine power plant project by Sabah Development Energy (Sandakan) Sdn Bhd; SM Hydro Energy Sdn Bhd at the Palm Oil Industrial Cluster (POIC) in Sandakan; and, the 400MW solar energy quota to Edra Power Holdings Sdn Bhd for the development of a solar energy plant,” she said in the Dewan Rakyat yesterday. She was replying to a question from Wong Kah Woh (PH-Ipoh Timor), who wanted to know the contracts cancelled by the ministry. Yeo said the cancellations were not expected to have a negative impact on the finances and legislation of the government. “With the cancellations, the government will save RM1.26 billion in electricity supply to consumers.
“The government is committed to ensuring that electricity supply projects in the future, either based on fossil fuel or renewable energy, will be awarded through open tender,” she said.