GEORGE ORWELL DIDN’T HAVE INDIA IN MIND WHEN HE WROTE HIS DYSTOPIAN NOVEL “1984”. HE COULD AS WELL HAVE HAD. THE YEAR SET OFF A CHAIN OF EVENTS THAT TRANSFORMED INDIA’S POLITICS, ECONOMICS AND SOCIETY.
We all know that the independent power producer IPP deals are not favourable to Malaysians and especially to Tenaga Nasional Bhd, the national electricity company.
It seems the editor of Business Times was having an off day when they labelled the Genting power assets sale a ‘sensible deal’ (Business Times Aug 14, ‘Genting power assets sale a sensible deal’)
This deal makes no sense from a logical or business perspective. After having consumers pay for the secret IPP deals, we now have to swallow this.
The most logical price to pay for this plant is book value, and only after a thorough plant survey, and maybe a little extra for some goodwill.
Within three years, this plant will be almost worthless in Malaysia unless they can negotiate a new IPP deal.
Is this one way of forever keeping the agreements a secret? Or could it be the testing of the mechanism to buy out all the other IPPs at ludicrous prices too?
So how is 1MDB going to manage this plant? I suppose they could create another Syabas-type model and pay the CEO something like RM400,000 a month?
Most likely there will be the usual upgrading and refurbishments resulting in another RM500 million in more dubious deals. The only economic transformation progression (ETP) for Malaysia in this deal is Malaysia going from indebtedness to Greek-like bankruptcy.
The headline is hilarious but misleading. This is not a sensible deal for Malaysians but it is certainly one sweetheart deal for Genting!
The managing contractor of the insolvent Asian Petroleum Hub (APH) in Johor, once billed as one of the world’s largest fully integrated oil terminals, is suing the project’s receivers, financiers and owners, said main contractor Muhibbah Engineering Berhad (MEB) — who are also named in the suit — in a filing today with Bursa Malaysia.
Others named in the suit filed by ZAQ Construction Sdn Bhd are CIMB, APH, and Lim San Peen (the receiver and manager appointed by CIMB over APH).
“ZAQ is alleging MEB’s involvement in the restructuring scheme proposed by the receiver and manager in January 2012 vis-à-vis the APH Project, and thereby indicating its support for such proposed scheme. The proposed restructuring scheme was subsequently called off by the Receiver due to withdrawal of support by CIMB in end June 2012,” the filing stated.
ZAQ is seeking damages against all the defendants. No amount was specified in the suit.
MEB said it was of the view that the claim brought by ZAQ is “frivolous and the company will defend the case.”
It was reported in June that CIMB had withdrawn its backing for the project’s restructuring.
APH was placed under receivership in January and CIMB had appointed PricewaterhouseCoopers to oversee the restructuring.
APH had awarded Muhibbah the contracts for marine piling and jetty work worth RM820 million.
It also reportedly owes CIMB some RM840 million, which was part of a RM1.4-billion bridging loan facility provided to the project back in 2006.
As part of the earlier proposed settlement, the current shareholders of APH — KIC Oil & Gas (90 per cent stake) and Umno-linked Trek Perintis (10 per cent) — had agreed to surrender their equity holdings, although it was not clear if they received financial compensation.
APH was designed with a storage capacity of 924,000 cubic metres and large trans-shipment facility, and is located on a 40-ha reclaimed island off the coast of Johor.
RHB Research Institute said in a February report that APH was to be completed in 2009 but was now only 60 per cent complete following delays as the soil on the island was found to be unsuitable to be built on.
Financier CIMB had placed APH under receivership last year over a RM1.4 billion three-year bridge loan granted in 2006.
APH drew down RM840 million but costs had escalated. The firm tried unsuccessfully to look for investors for a further RM2 billion in new financing.
More than four years ago, the Cabinet decided that Seaport Terminal, a private company controlled by tycoon Tan Sri Syed Mokhtar Albukhary, should be allowed to take up a 35 per cent stake in the project. The tussle between Seaport and KIC has yet to be resolved
.readmoreA murky and embarrassing case is closed, hiding top government officials’ involvementhttp/themalaybusinesstribune.blogspot.com/2012/09/pilferers-of-past-red-hot-end-governed.html
No comments:
Post a Comment