~ By Lee Wei Lian
KUALA LUMPUR, Jan 9 – Even as it prepares to submit a detailed report on its findings and recommended actions based on its analysis of the toll concession agreements, DAP has already served notice that it intends to dissect the agreements that the government inked with independant power producers (IPPs) next.
IPP agreements are also seen to be immensely profitable as Tenaga Nasional Bhd is obliged to buy power from them even when it does not need it and the natural gas used by IPPs are subsidised by Petronas to well below market rates.
“We would like the minister of energy water and communication to emulate steps taken by the works minister to declassify the IPP agreements. We would like the agreements to be open for review to see if government has entered into unfair contracts,” says Tony Pua, DAP’s member of parliament for Petaling Jaya Utara. He also expressed appreciation to the Works Minister, Datuk Mohd Zin Mohamed, for moving to declassify toll concession agreements.
No doubt the point man for analysing the IPP agreements will be Teh Chi Chang, who is DAP’s economic advisor and a former executive director of investment reseach at Citibank Asia Pacific who has covered toll highways and IPPs for 13 years. Before Citibank, he was executive director and country head of research at Hwang-DBS Vickers Research. Teh,38, joined DAP in September last year.
While IPP agreements are covered by the Official Secrets Act, Teh says that it is “loosely enforced” and a loophole is created when the IPP goes for listing as Bursa Malaysia mandates that the IPP agreement must be made open to shareholders.
Article taken from The Malaysian Insider.