Najib: Govt studying IPP deals

Najib: Govt studying IPP deals

2011/06/13
By Eileen Ng
news@nst.com.my

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KUALA LUMPUR: The government is studying concession agreements with certain independent power producers.

Prime Minister Datuk Seri Najib Razak said: "The government will explain soon because we are relooking the agreements with certain IPPs." Najib also responded to criticisms that the government was favouring IPPs by allowing lopsided concession agreements.

"The majority of the IPP agreements are no longer as one-sided as before. We are in discussions and it is not true we protect the IPPs. We champion the people," he told a press conference after opening the Ampang Umno divisional meeting and its new building yesterday.

Najib was also asked to comment on the setting up of a cabinet committee, comprising three ministers, namely Minister in the Prime Minister's Department Tan Sri Nor Mohd Yakcop, Energy, Green Technology and Water Minister Datuk Seri Peter Chin and Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah, to look into the issue.

Najib urged all quarters to give the cabinet committee time to study the matter.

"The three ministers are working to find a solution that is acceptable to all." To a question whether the IPP agreementswould be opened to public scrutiny, Najib said the matter would be addressed later and "q uite soon".

In Ipo h, Bernama reported that Ahmad Husni noted that the committee would not confine itself to matters related to IPPs, but include all aspects of power supply as well as subsidies.

He said it would present a report to the cabinet as soon as possible although no deadline had been set.

"The committee will study various aspects (of power supply) and not just relating to the IPP problem... among them (production) costs and (requirements for) the future because some IPP concessions will end in 2014 and 2015." Ahmad Husni said this after opening the Rukun Tetangga beat base for Kampung Tengku Hussin.

He was commenting on a statement by Gua Musang member of parliament Tengku Razaleigh Hamzah, who suggested that the government set up a royal commission of inquiry to look into IPP concessions.

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