PARLIAMENT 1Malaysia Development Bhd’s purchase of the company which owns 75 percent of independent power producer (IPP) Genting Sanyen did not influence the government’s decision to extend the IPP’s concession.

NONE Replying to Dr Lee Boon Chye (PKR-Gopeng, left ) during Question Time, the government said that the extension was granted as Genting Sanyen won a competitive bid.

“The extension of IPP concessions are done through an open and transparent process, that is through competitive bidding.

“The IPPs for which concessions were ending in 2016 were invited for the bid, and Genting Sanyen won the bid after going through a tight selection process,” Energy, Green Technology and Water Minister Maximus Ongkili said.

He added that the bid was overseen by three expert panels, which selected Genting Sanyen and Segari Energy Ventures for 10-year concessions respectively.

TNB Pasir Gudang, meanwhile, was awarded a five-year concession.

“It did not arise that the government had given them an advantage because they are owned by 1MDB,” he said.

‘Hidden reasons?’

Lee had asked if there were “hidden reasons” behind the extension of Genting Sanyen’s concession.

“It seems like there is a hidden reason to ensure that the IPP owned by 1MDB will receive continuous profits,” he said.

1MDB, which is Malaysia's sovereign wealth fund, paid RM2.55 billion Genting Bhd for Mastika Lagenda Sdn Bhd which owns 75 percent of Genting Sanyen.

The deal raised criticism due to the “ageing” power plants and the fact that the concessions were due to expire in 2016.