Genting power assets sale a ludicrous deal
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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!
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!
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