KUALA LUMPUR (Nov 16): The government can step in to impose conditions on the foreign consortium consisting of China's state-owned company China General Nuclear Power Corp Ltd (CGNPC) and Qatar's Nebras Power QSC should it win the tender to buy Edra Global Energy Bhd's power assets, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said today.

Tenaga Nasional Bhd (TNB) and the CGNPC-Nebras consortium are currently in the running to buy Edra's power assets.

On Nov 5, The Edge Financial Daily reported that TNB had put in the lowest bid for the equity of Edra at slightly above RM8 billion, about 20% lower than the closest competing bid from the CGNPC-Nebras consortium, giving the latter an advantage over TNB to win the tender to buy Edra.

Ahmad Husni said Edra's parent 1Malaysia Development Bhd (1MDB) had called for an international tender for the sale of Edra assets as part of its restructuring to reduce its debts of RM42 billion.

"When we go for international tender, what kind of decision should we make?

"Do we give the tender to another company when a company has made a higher bid? (If yes,) this will definitely tarnish the country's image internationally," Ahmad Husni said, without disclosing who the winner is.

On concerns over security of the country's electricity supply should the power assets of Edra be sold to foreigners, Ahmad Husni said the government will ensure that the sovereignty of the country remains intact.

Ahmad Husni said ultimately the Energy Commission has the final say in deciding the terms of the power purchase agreements for independent power producers (IPPs).

He added that Edra's power assets only account for 14% of the country's electricity supply and that it is normal at international level for foreign companies to take up a big share of the power produced in a country.

He cited Singapore where YTL Power International Bhd has 100% equity of an IPP, with capacity of 3100MW.

"This is not something that is unique but something common at international level. So, let's wait for the decision made by 1MDB," Ahmad Husni added.

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