Coal news and updates

TNB shares down over 1MDB coal plant deal

News of Tenaga Nasional Bhd (TNB) acquiring a 70% stake in 1Malaysia Development Bhd’s (1MDB) coal power plant has sent it share price plunging to its lowest in eight months.

TNB shares fell 6.5% yesterday, before closing at 4.3% lower than the start of the day.

Yesterday, Energy, Green Technology and Water Minister Maximus Ongkili announced that the proposed takeover of 1MDB’s Project 3B power plant had been approved by the Cabinet.

Bernama reported that Ongkili had said the government chose not to go with an open tender because the project was delayed and TNB could do it “fast and at an acceptable rate.”

“They have requested a small revision to the tariff because it is six months late and the exchange rate too has changed since then,” he had said.

TNB and the government would decide on the tariff rate, he added.

1MDB obtained the RM11 billion project in early 2014 in a joint venture with Mitsui & Co Ltd and reportedly beat YTL Power International, TNB and Malakoff Corp in the open tender bid.

Project 3B is a 2,000MW coal-fired power plant near the Jimah Power Station in Negeri Sembilan, another power project in which 1MDB has a 75% stake.

source: http://www.freemalaysiatoday.com