© Nikkei Markets
KUALA LUMPUR (Oct 25) — Malaysia will potentially save 1.26 billion ringgit ($302.2 million) following cancellation of four power projects, the minister of energy, green technology, science, climate change and environment said Thursday.
The projects – a 700MW gas plant in Kapar by Malakoff Corp and Tenaga Nasional, 1,400 MW gas plant in Paka, Terengganu by Aman Majestic Sdn Bhd and Tenaga Nasional, a 300 MW gas plant in Palm Oil Industrial Cluster, Sandakan by Sabah Development Energy Sdn Bhd and SM Hydro Energy Sdn Bhd and a 400 MW solar power quota to Erda Power Holdings – were cancelled “due to the lopsided terms in favour of the project developers,” Yeo Bee Yin said in parliament.
Future power projects will be awarded through open tendering instead of direct negotiation, Yeo said.
Malaysia’s electricity reserve margin remains at the 32% optimal level and the cancelled projects will not result in any negative financial or legal implication to the government, she said.
The government had earlier said it was considering cancelling up to eight power projects to help boost competitiveness and keep a lid on power generation cost.
– By Gan Pei Ling
– Edited By Abhrajit Gangopadhyay