KUALA LUMPUR: Malakoff Corp Bhd has dismissed talks of a delay in the construction of its 1,000mw Tanjung Bin Energy (T4) coal power plant, saying they are “misleading” and “do not present the current situation”.
In a statement yesterday, Malakoff said there is no truth to reports that its T4 power plant is expecting a six- to 12-month delay.
“Any risk of construction delay that arose in 2013 was during the initial stages of the construction.
“The scheduled completion date is March 2016. Now after more than 24 months of construction ... the construction delays have been addressed, with Malakoff expecting to deliver the T4 power plant within the stipulated time,” it added.
On Wednesday, opposition lawmaker Tony Pua called on the government to terminate and penalise independent power producers (IPPs), namely 1Malaysia Development Bhd (1MDB) and Malakoff, for failing to finance and deliver their concessions.
He also questioned why new IPP contracts were being awarded to the companies when they had failed to commence their respective projects due to financial difficulties.
Pua said every year’s delay to the completion of each power plant project will cost Malaysian consumers RM644 million in higher electricity prices.
1MDB, which has been awarded the 2,000mw coal-fired power plant as well as the Project 4A gas-turbine power plant in Melaka, has not started work on the projects due to shortage of funds.
This article first appeared in The Edge Financial Daily, on March 27, 2015.