DR M’S WARNING ON NAJIB’S CHINA SALES COME TRUE: BEIJING’S EDRA TO BUILD, OWN & OPERATE POWER PLANT IN ALOR GAJAH, TENAGA HAS TO BUY FROM IT FOR 21 YEARS

China-owned Edra Global Energy will build, own and operate a power plant in Alor Gajah, Malacca, a Bursa Malaysia filing has revealed.

State investment firm 1MDB had sold the power asset to China General Nuclear Power Corporation and its subsidiaries for RM9.83 billion cash last May.

According to a Tenaga Nasional Bhd (TNB) filing to the bourse yesterday, Edra Energy Sdn Bhd will construct, own, operate and maintain a gas-fired combined cycle electricity generating facility in Alor Gajah.

The filing was to announce that TNB had signed a 21-year power purchase agreement with Edra Energy Sdn Bhd, a wholly-owned subsidiary of Edra Power Holdings Sdn Bhd.

The plant will have a total nominal capacity of 2,242.131 megawatts, generated from three blocks.

TNB said commercial operation is expected on Jan 1, 2021, with the second block generation on March 1 and the third block genertion on May 1 of that year. The agreement covers the period after Jan 1, 2021, TNB said.

1MDB’s sale of assets to China came under scrutiny over concerns of the superpower’s control over sensitive assets that are key to national security.

Last year, China Railway Engineering Corp bought a 40 percent stake in 1MDB’s Bandar Malaysia development in Kuala Lumpur for RM12.4 billion.

Additionally, China Communications Construction Co was last October awarded a contract to build a 620-kilometre East Coast Rail (ECRL) worth RM55 billion.

Export-Import Bank of China is financing the ECRL project.

Last month, Malaysia and China said they would set up a high-level committee to oversee issues of security and defence in both countries.

Defence Minister Hishammuddin Hussein said the committee would discuss security issues pertaining to North Korea, the South China Sea and terrorism, as well as emphasise on training and strategic affairs.

MKINI

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