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Sale Of Edra Will Not Affect Electricity Tariffs, Says Arul Kanda

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KUALA LUMPUR – The sale of Edra Global Energy Bhd will not affect electricity tariffs, said 1Malaysia Development Bhd (1MDB) President and Group Executive Director, Arul Kanda Kandasamy.

“This is because the prospective buyers of Edra must maintain the tariff as agreed upon in the power purchase agreement (PPA)which will be fixed throughout its duration.

” So, anyone, buying the company cannot raise the rates,” told a briefing on the 1MDB.TPPA.Budget 2016, here today.

The sale of Edra Global Energy is part of 1MDB’s rationalisation programme, aimed at reducing its debts.

Two foreign bidders and one local, have been shortlisted to submit bids to buy the company, estimated to be worth between RM16 billion and RM18 billion.

Arul Kanda said only one PPA with a 400 megawatt capacity would expire in January next year, while others have a longer agreement period.

The amount is significantly much lower than the overall generation capacity of Edra Global Energy which is 5,550 megawatt.

Arul Kanda said after a process of rationalisation, 1MDB still owned assets worth between RM10 billion and RM12 billion, a including 100 per cent holding in the Tun Razak Exchange.

Other assets owned by 1MDB are a 40 per cent stake in Bandar Malaysia Sdn Bhd worth between RM4 billion to RM5 billion, land in Ayer Itam, Penang (RM1 billion) and Pulau Indah (RM300 million). – BERNAMA

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