MOBILE - Amazon S3 · TNB: Time to jump in? FEBRUARY 13, 2015 TNB sees biggest 2day loss since 2008...
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SHARMILA GANAPA... EXP:15/02/2015 RENEW Don’t let Greece cut the line for debt relief 1MDB says Ananda’s RM2bil aid is ‘speculation’ Michele Ferrero, owner of Nutella empire, dies at 89 Link between HSBC Swiss accounts, Petrobras scandal Venezuelans scratch heads over complex devaluation Sun Pharma founder to invest US$290mil in Suzlon OCBC did not reach deal to sell stake to Thai billionaire Former HSBC chairman steps down after leaks Apple learning to make self driving car 10% reduced cost for taxi operators Argentina’s bond mess gets a TIGERTALK | MAY 30, 2014 4:55 PM A dangerous lesson in history Humans in Tiger’s homeland are up in arms over news that the Energy Commission has decided to award a combined gas turbine power plant called Project 4A via direct negotiations instead of the triedandtested open tender process. It’s forcing Tiger to take a walk down memory lane…and the sights are not pretty. Tiger is having a headache, thanks to one too many sangrias last night with her fellow tigresses. But Tiger was rudely awakened this morning by a loud beep from her computer, signalling that it was time to wake up and start working on her next tigeriffic piece. And so she painfully dragged herself to her desk to reread yesterday’s news: that the Energy Commission is awarding the Project 4A power plant via direct negotiations instead of the usual competitive bidding route. “Grrr!” was Tiger’s first response when she read of this grossly unfair development yesterday, she then promptly called her besties and the rest as they say, is history. But Tiger digresses. Direct negotiations for a multibillion ringgit power plant project? How preposterous! Still plagued by a headache, Tiger popped a Panadol and waited for the sangriainduced fog to lift. Fast forward an hour, and Tiger’s no better, but lucid enough to write her say on the subject. First up, what the heck is wrong with the humans that rule the Energy Commission? They award contracts to build Track 1, 2, 3A and 3B through the much fairer competitive bidding process and then promptly change their minds for Project 4A (Track 4A)? The uninitiated human may wonder why Tiger is all riled up over Project 4A. She has very good reason to, because direct negotiations mean that there is no control over the price of building the plant, mainly because no competition is involved. And don’t we all know that when costs surge, they will eventually trickle down to the consumers, who will have to pay higher prices for electricity. This direct negotiation business is a case of history repeating itself, which leaves a bad taste in everyone’s mouth. It’s not the first time (remember that 1Malaysia Development Bhd was awarded the solar plant project in Kedah through direct negotiations) and unlikely to be the last. Walk further down memory lane with Tiger and you’ll see even uglier sights. Tiger remembers that back in the midnineties, humans were equally appalled when the government forced power producer Tenaga Nasional Bhd (TNB) to sign power purchase agreements (PPAs) with a number of independent power producers (IPPs). The IPPs came about as a result of government efforts to ensure a stable power supply after a twoday STORY BY G. SHARMILA [email protected] SEARCH KINIBIZ SEAR TIGERTALK Halt the silence, 1MDB FEBRUARY 13, 2015, 3:30 PM Oy Putrajaya, get your act together FEBRUARY 12, 2015, 11:52 AM Gargantuan RM100 bil task for new Petronas CEO FEBRUARY 11, 2015, 4:48 PM Ismail Sabri’s comments on boycott highly irresponsible FEBRUARY 10, 2015, 4:02 PM MORE ON INSIDE STORY PAGE Mama: Not a problem if Indonesia st sending maids FEBRUARY 15, 2015, 6:48 PM S'porean PM diagnosed with prostat cancer FEBRUARY 15, 2015, 6:37 PM 'Offer Anwar DPM post? Quit the dra FEBRUARY 15, 2015, 6:27 PM Bernama TV staff get paid, gov’t to t over, but... FEBRUARY 15, 2015, 6:27 PM Nik Aziz gets Valentine's Day messag Melbourne FEBRUARY 15, 2015, 5:50 PM T'ganu to go after 'indecent' pillion r FEBRUARY 15, 2015, 4:42 PM MORE ON MALAYSIAKINI.COM Like Tweet MOBILE FEATURED ISSUES TIGERTALK STOCKSTALK CORPORATE
Transcript of MOBILE - Amazon S3 · TNB: Time to jump in? FEBRUARY 13, 2015 TNB sees biggest 2day loss since 2008...
SHARMILA GANAPA...EXP:15/02/2015 RENEW
Don’t let Greece cut the line fordebt relief
1MDB says Ananda’s RM2bilaid is ‘speculation’
Michele Ferrero, owner ofNutella empire, dies at 89
Link between HSBC Swissaccounts, Petrobras scandal
Venezuelans scratch headsover complex devaluation
Sun Pharma founder to investUS$290mil in Suzlon
OCBC did not reach deal to sellstake to Thai billionaire
Former HSBC chairman stepsdown after leaks
Apple learning to make selfdriving car
10% reduced cost for taxioperators
Argentina’s bond mess gets a
TIGERTALK | MAY 30, 2014 4:55 PM
A dangerous lesson in history
Humans in Tiger’s homeland are up in armsover news that the Energy Commission hasdecided to award a combined gas turbinepower plant called Project 4A via directnegotiations instead of the triedandtestedopen tender process. It’s forcing Tiger totake a walk down memory lane…and thesights are not pretty.
Tiger is having a headache, thanks to one too manysangrias last night with her fellow tigresses. But Tiger was rudely awakened this morning by a loud beepfrom her computer, signalling that it was time to wake up and start working on her next tigeriffic piece.
And so she painfully dragged herself to her desk to reread yesterday’s news: that the EnergyCommission is awarding the Project 4A power plant via direct negotiations instead of the usualcompetitive bidding route.
“Grrr!” was Tiger’s first response when she read of this grossly unfair development yesterday, she thenpromptly called her besties and the rest as they say, is history.
But Tiger digresses. Direct negotiations for a multibillion ringgit power plant project? Howpreposterous! Still plagued by a headache, Tiger popped a Panadol and waited for the sangriainducedfog to lift.
Fast forward an hour, and Tiger’s no better, but lucid enough towrite her say on the subject. First up, what the heck is wrong withthe humans that rule the Energy Commission? They awardcontracts to build Track 1, 2, 3A and 3B through the much fairercompetitive bidding process and then promptly change theirminds for Project 4A (Track 4A)?
The uninitiated human may wonder why Tiger is all riled up overProject 4A. She has very good reason to, because directnegotiations mean that there is no control over the price ofbuilding the plant, mainly because no competition is involved.
And don’t we all know that when costs surge, they will eventually trickle down to the consumers, whowill have to pay higher prices for electricity.
This direct negotiation business is a case of history repeating itself, which leaves a bad taste ineveryone’s mouth. It’s not the first time (remember that 1Malaysia Development Bhd was awarded thesolar plant project in Kedah through direct negotiations) and unlikely to be the last.
Walk further down memory lane with Tiger and you’ll see even uglier sights. Tiger remembers that backin the midnineties, humans were equally appalled when the government forced power producer TenagaNasional Bhd (TNB) to sign power purchase agreements (PPAs) with a number of independent powerproducers (IPPs).
The IPPs came about as a result of government efforts to ensure a stable power supply after a twoday
STORY BYG. [email protected]
SEARCH KINIBIZ SEARCH
TIGERTALK
Halt the silence, 1MDBFEBRUARY 13, 2015, 3:30 PM
Oy Putrajaya, get your act togetherFEBRUARY 12, 2015, 11:52 AM
Gargantuan RM100 bil task for newPetronas CEOFEBRUARY 11, 2015, 4:48 PM
Ismail Sabri’s comments on boycotthighly irresponsibleFEBRUARY 10, 2015, 4:02 PM
MORE ON INSIDE STORY PAGE
Mama: Not a problem if Indonesia stopssending maidsFEBRUARY 15, 2015, 6:48 PM
S'porean PM diagnosed with prostatecancerFEBRUARY 15, 2015, 6:37 PM
'Offer Anwar DPM post? Quit the drama'FEBRUARY 15, 2015, 6:27 PM
Bernama TV staff get paid, gov’t to takeover, but...FEBRUARY 15, 2015, 6:27 PM
Nik Aziz gets Valentine's Day message inMelbourneFEBRUARY 15, 2015, 5:50 PM
T'ganu to go after 'indecent' pillion ridingFEBRUARY 15, 2015, 4:42 PM
MORE ON MALAYSIAKINI.COM
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FEATURED ISSUES TIGERTALK STOCKSTALK CORPORATE
Ani Arope
Abdul Razak Abdul Majid
blackout in 1992. TNB was at the time the sole power producer in the country. The government decidedthat the industry should be deregulated so that there would be no repeats of the 1992 incident.
The PPAs were the result of direct negotiations between the government and IPPs, giving TNB no choicebut to purchase electricity generated by IPPs at prices higher than if TNB were to produce it.
This led TNB to pass down the higher electricity prices to consumers. To this day, many humans (andTigers) believe they are paying higher electricity prices due to the ‘legacy’ of this forced industryderegulation and they would not be far off the mark for believing this.
In fact, in an interview with The Star in 2006, former TNBexecutive chairman Ani Arope alleged that TNB had been ready toplant up following the 1992 blackout, but that it was preventedfrom doing so by the Economic Planning Unit (EPU). TNB wasordered to surrender the land it had acquired to the government,and not long after the government announced plans to privatisepower plants.
Ani Arope also alleged in the interview that it had no negotiationswith the IPPs. TNB had to deal with the EPU, who gave TNB theterms and asked management to agree. Ani refused to agree.
In the interview, Ani also said that the pricing and terms of thePPAs “was all fixed up”. “They said you just take it and I refused to sign the contracts. And then I wasput out to pasture,” he was quoted as saying.
Later, the government did put in the checks and balances to ensure that IPPs do not continue earningludicrous profits from their PPAs, but the damage had already been done. The IPPs created overnightbillionaires and many of them continue to profit at TNB’s expense even today.
Recall that among the firstgeneration of IPPs was YTL Power, often said to be the richest IPP. Thesame company is now tipped to win the Project 4A award as part of a consortium linked to the Sultan ofJohor.
If indeed history does repeat itself and the Energy Commission decides to award Project 4A throughdirect negotiations, this would only serve to stoke the fire of discontent among members of the public,(not to mention TNB, which has also been keen on bidding for the same power plant project).
Tiger hopes that the rumours are not true and that thecommission keeps to its word that Track 4A and 4B will beawarded via competitive bidding, but she’s not about to holdher breath. For it has reached Tiger’s ears that during ameeting with the commission on Tuesday, TNB unionrepresentatives were told by the commission chairman AbdulRazak Abdul Majid that the competitive bidding wouldcontinue, but that the government had the final say on theawarding of power plant projects.
Tiger is not pleased and wonders if this is a hint of darker daysto come for the electricity industry and consumers alike.
GRRRRR!
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