Kapar IPP project among those cancelled by govt - Yeo

KUALA LUMPUR, Oct 25 (Bernama) - - The 700-megawatt (MW) power plant projects by Malakoff Corporation Berhad and Tenaga Nasional Berhad (TNB) in Kapar was among four Independent Power Producers (IPP) projects which were cancelled by the government.

Energy, Technology, Science, Climate Change and Environment Minister Yeo Bee Yin said the cancellations were because of non-compliance of conditions stipulated in the offer letters from the developers.

“Other projects are the 1,400 MW power plant by Aman Majestic Sdn Bhd and TNB in Paka, Terengganu, the 300-MW combined gas engine power plant project by Sabah Development Energy (Sandakan) Sdn Bhd and SM Hydro Energy Sdn Bhd at the Palm Oil Industrial Cluster (POIC) in Sandakan and the cancellation of the 400-MW solar energy quota to Edra Power Holdings Sdn Bhd for the development of a solar energy plant,” she said during Question Time at the Dewan Rakyat today.

She was replying to a question from Wong Kah Woh (PH-Ipoh Timur) who wanted to know the contracts of which IPPs would be cancelled as was previously announced by the ministry.

Yeo said the cancellations were not expected to have a negative impact on the finances and legislation of the government.

“With the cancellations, the government will save electricity supply to consumers amounting to  RM1.26 billion.

"The government is also committed to ensuring electricity supply projects in the future, either based on fossil fuel or renewable energy, are awarded through open tender,” she said.

-- BERNAMA