Rafizi continues to punch 'acquaintance' Arul
Published: Jan 9, 2015 4:46 PM | Updated: Jan 9, 2015 8:47 PM
As promised, Rafizi Ramli continues to welcome his acquaintance Arul Kanda as the new president of 1Malaysia Development Berhad (1MDB) with repeated blows.
Jimah Timur power plant delay may cost between RM370 and RM997 million.
As promised, Rafizi Ramli continues to welcome his acquaintance Arul Kanda as the new president of 1Malaysia Development Berhad (1MDB) with repeated blows.
In the latest jab, the PKR vice-president said documents in his possession with regard to the Jimah Timur power plant estimated that the delays would cost between RM370 million (for a six-month minimum hold up) and RM997 million (for a 12-month hold up).
Rafizi urged the Energy Commission to retract the contract should the firm fail to deliver the power plant on the stated dates and start a new tender process.
He appealed to the commission to make a clear stand and not give room to 1MDB to delay the power plant as the cost which the people must bear would be too exorbitant.
Rafizi’s latest salvo was based on documents provided to him which purportedly show that the firm’s subsidiary Jimah East Power Sdn Bhd requested that the dates for the contract and operation of the power plant be pushed to May 15, 2019 (Unit 1) and Nov 15, 2019 (Unit 2).
“If the commission allows the request, the people would be burdened with additional cost,” he added in a statement today.
This is because Tenaga Nasional Bhd, which is the sole electricity provider in the country, would be forced to upgrade the operations of other power plants beyond their normal capacity to provide the supply which 1MDB had failed to deliver according to schedule.
Rafizi said that when power plants operated beyond their normal capacity, TNB would have to procure additional combustible matter which usually involved a premium.
“Apart from that, due to 1MDB’s failure, other power plants would be exposed to the risk of breakdowns if they continued to operate beyond their normal capacity,” he added.
When it was announced that Arul would be taking over the firm, Rafizi told Malaysiakini that he would not withhold the punches.
The two became acquainted when pursuing their education in the United Kingdom.
Rafizi said he was provided with detailed information on the negotiation between the commission and 1MBD after the latter’s application for a postponement of the dates.
He added that 1MDB wrote an official letter to the commission on Nov 13 last year to seek an extension and a meeting scheduled for December.
The firm was awarded the contract to complete the power plant with the agreement stating that Unit 1 should be operational on Nov 15, 2018 followed by Unit 2 on May 15, 2019.
Jimah Timur is located in Negri Sembilan, and comprises two coal-fired generators with a capacity of 1,000 megawatts each.
It is to be built on reclaimed land and mangrove swamps, but Rafizi previously claimed that even the reclamation work has yet to begin, which in turn could mean more delays in the future because such works require considerable time and planning.
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In the latest jab, the PKR vice-president said documents in his possession with regard to the Jimah Timur power plant estimated that the delays would cost between RM370 million (for a six-month minimum hold up) and RM997 million (for a 12-month hold up).
Rafizi urged the Energy Commission to retract the contract should the firm fail to deliver the power plant on the stated dates and start a new tender process.
He appealed to the commission to make a clear stand and not give room to 1MDB to delay the power plant as the cost which the people must bear would be too exorbitant.
Rafizi’s latest salvo was based on documents provided to him which purportedly show that the firm’s subsidiary Jimah East Power Sdn Bhd requested that the dates for the contract and operation of the power plant be pushed to May 15, 2019 (Unit 1) and Nov 15, 2019 (Unit 2).
“If the commission allows the request, the people would be burdened with additional cost,” he added in a statement today.
This is because Tenaga Nasional Bhd, which is the sole electricity provider in the country, would be forced to upgrade the operations of other power plants beyond their normal capacity to provide the supply which 1MDB had failed to deliver according to schedule.
Rafizi said that when power plants operated beyond their normal capacity, TNB would have to procure additional combustible matter which usually involved a premium.
“Apart from that, due to 1MDB’s failure, other power plants would be exposed to the risk of breakdowns if they continued to operate beyond their normal capacity,” he added.
When it was announced that Arul would be taking over the firm, Rafizi told Malaysiakini that he would not withhold the punches.
The two became acquainted when pursuing their education in the United Kingdom.
Rafizi said he was provided with detailed information on the negotiation between the commission and 1MBD after the latter’s application for a postponement of the dates.
He added that 1MDB wrote an official letter to the commission on Nov 13 last year to seek an extension and a meeting scheduled for December.
The firm was awarded the contract to complete the power plant with the agreement stating that Unit 1 should be operational on Nov 15, 2018 followed by Unit 2 on May 15, 2019.
Jimah Timur is located in Negri Sembilan, and comprises two coal-fired generators with a capacity of 1,000 megawatts each.
It is to be built on reclaimed land and mangrove swamps, but Rafizi previously claimed that even the reclamation work has yet to begin, which in turn could mean more delays in the future because such works require considerable time and planning.
Related stories
1MDB woes worsen banks' cash squeeze
1MDB CEO's to-do list - slash debt, list assets
'1MDB's Caymans claim ploy to mislead auditors?'
Why stress that 1MDB new boss is Muslim?
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