KUALA LUMPUR (Nov 11): 1Malaysia Development Bhd (1MDB), in a joint statement today with DuSable Capital Management LLC, said while the two entities had discussed working together to jointly develop a proposed 50MW solar power plant in Kedah, no definitive agreement was ever reached about the project or any other solar power projects.

According to the statement titled Factual Clarification on 50MW solar power plant in Kedah, Malaysia, 1MDB engaged US private equity firm DuSable in 2013 to assist with project development of utility-scale grid connected solar power generation capability, "for which DuSable was remunerated US$506,000 for costs and expenses".

Then on March 18, 2014, 1MDB was granted — via a letter of award from the Ministry of Energy, Green Technology and Water (KeTTHA) — the right to develop multiple utility scale solar photovoltaic power plants, with an aggregate capacity of up to 500MW.

"However, 1MDB was required, amongst others, to undertake detailed feasibility studies, execute a Power Purchase Agreement (PPA), source equity and debt financing, and procure other requisite approvals for each individual solar power plant," the statement read.

On April 11, 2014, 1MDB, via its wholly-owned unit 1MDB Synergy Sdn Bhd, entered into a master joint venture agreement (Master JVA) with Yurus Private Equity Fund I, LP (Yurus PE Fund), to jointly develop up to 500MW of solar power plants in Malaysia.

DuSable was appointed as the investment adviser to the Yurus PE Fund; the Master JVA shareholding was 49% Yurus PE Fund and 51% 1MDB Synergy, the statement read.

Then on April 12, 2014, 1MDB, via its wholly-owned subsidiary 1MDB Solar Sdn Bhd (1MDB Solar), entered into a PPA with Tenaga Nasional Bhd for the construction of a 50MW solar power plant in Kedah, Malaysia.

"It is important to highlight that Yurus PE Fund and DuSable were not and never were, signatories to this PPA, nor did either party, at any time, have ownership of 1MDB Solar," 1MDB said.

1MDB and DuSable subsequently engaged in discussions for a partnership to develop, finance and construct the proposed 50MW solar power plant in Kedah.

"However, no project level joint venture agreement was reached between the parties for this solar power project or any other individual solar power project," said the Ministry of Finance-owned strategic investment fund.

On Oct 2, 2014, as part of the initial public offering (IPO) plans of Edra Global Energy Bhd, 1MDB acquired the entire 49% interest of Yurus PE Fund in the Master JVA, for a final amount of US$69 million.

"This acquisition ensured that 1MDB and Edra would own 100% of the rights to develop up to 500MW of solar power plants, prior to the launch of a proposed IPO of Edra," 1MDB said.

"We trust the above clarification will address the unsubstantiated allegations being made by certain opposition politicians in Malaysia, who have selectively extracted and misrepresented information relating to 1MDB, in order to mislead the public for their political purposes," it added.

Last month, Kelana Jaya MP Wong Chen had demanded that finance minister Datuk Seri Najib Razak — who is also the Prime Minister and chairman of 1MDB's board of advisors — state the latest status of 1MDB's solar power plant project with DuSable in Kedah and the key conditions of the agreement.

The question was in relation to a report in an English daily on the joint venture project last year, which said that DuSable would be the investment adviser to a private equity fund in which 1MDB would be a limited partner.

In a written reply to Wong, Prime Minister Datuk Seri Najib Razak had said that 1MDB had never signed any joint venture agreement with DuSable in Kedah.