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Pakatan under fire over IPPs double standard

 | October 23, 2012

BN MPs have termed Pakatan Rakyat as hypocritical for standing against IPPs, when an opposition-run state is making money off one.

KUALA LUMPUR: Barisan Nasional MPs have queried Pakatan Rakyat over their supposedly hypocritical stand when it comes to Independent Power Producers (IPP).

Umno-Rembau MP Khairy Jamaluddin asked why the Selangor state government was making money through the Genting Sanyen power plant, when opposition’s leaders regularly attacked BN for supposedly lopsided Power-Purchasing Agreements (PPA).

“Among the first-generation IPPs is the Genting Sanyen gas-fired power plant, where 25% of it is owned by Worldwide Holdings Berhad, a wholly-owned subsidiary of PKNS (Selangor State Development Corporation),” he told reporters in Parliament lobby.

He was accompanied by Umno-Kota Belud MP Abdul Rahman Dahlan and Gerakan-Simpang Renggam MP Liang Teck Meng.

Khairy acknowledged that though the investment was done before Pakatan Rakyat took over Selangor in the 2008 general election, the least the opposition could have done was to sell off its stake in Genting Sanyen.

The other 75% of the power plant is owned by 1Malaysia Development Berhad, a company wholly-owned by the federal government.

He also pointed at PKNS’s 30% stake in Kesas (Konsoritum Expressway Shah Alam Selangor) Holdings Berhad, the company which owns the Kesas Highway.

Khairy said accused the opposition of being inconsistent by having a stake in both Kesas and Genting Sanyan.

“They’ve had four years [since they took over Selangor], where they did nothing with investment Genting Sanyen…If you don’t agree with IPPs and PPAs, why doesn’t Selangor dispose its stake in Genting Sanyen?” he asked.

Khairy said that it was not right for Pakatan Rakyat to criticise 1MDB for buying into Genting Sanyen when PKNS had not relinquished its hold over the power plant.

Pakatan has on several occasions attacked the federal government over the IPPs. Opposition Leader Anwar Ibrahim has drawn question over them, promising that his coalition would renegotiate PPAs if Pakatan was voted into power. He also criticised these PPAs as profitable only to private energy companies.

However, Khairy and his colleagues believed that the agreements involving these first-generation IPPs were not as “equitable” as they should have been. He added that the government was working to renegotiate those terms.

Adding, Abdul Rahman said: “For the 3rd and 4th-generation IPPs, you don’t get as much meat as you do in the first-generations. Right now, it’s just bones. You have a little bit of money and profit, but the margin is very small.”


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