IPPs not main problem; good governance is
YOURSAY 'If politics and business not decoupled, power market will remain inefficient.'
With YTL out, Malay group wants IPPs abolished
Hplooi:
As usual the Malay-rightist sees everything in 'us-against-them', 'Malay-birth-rights’ against Malaysian rights. Even if the independent power producers (IPP) model is now retired, cost overruns and rising electricity bills will still be the order of the day if Malay-rightists refuse to examine issues in detail, rather than just spouting political talking-points.
Instead of just examining the forest, look at the trees first. If the fundamental issue of good governance (which is a main cause) is not looked at, then whatever the model - IPP, market liberalisation, total-government (TNB) control etc, the problem will not go away.
Back-pedaling to the old vertically-integrated model will make the electricity market even more inefficient especially if the old model is re-adopted.
Good governance means, decoupling technocratic decisions from political decisions and ensuring the right competency is present at the right place and the right time.
The agenda peddled by the MCC is an autarchic philosophy of 110 percent government contracts and control only and solely for bumiputera. The signs are already there; even the 'connections' of the Yeohs will not help them. But the normal non-Malay businessman will in the very near future be totally shut out of government contracts.
ONG: Selective and one-sided comments and suggestions including from former TNB chairperson Ani Arope. The IPP agreements may be morally wrong, but they came about because TNB screwed up big time & allowed YTL and others to take full advantage.
The older ones among us will surely remember that blackouts due to power outages used to be common and regular occurrences throughout the country.
For a long time I had my own emergency power supply (for lighting) using car batteries and DC fluorescent tubes. I remember one outage that lasted almost a week in Johor Bahru and the then Johor Sultan refereed to LLN (as TNB was then known) as Lembaga Lilin (candle) Negara.
However morally wrong the IPP agreements are, at least they delivered, very unlike the countless negotiated tenders where delayed and abandoned projects were and still not uncommon.
Since the Malay Consultative Council (MCC) is concerned with "the lack of opportunities for bumiputera vendors" perhaps they should look at abandoned and delayed projects.
Fairnsquare: Another pressure group with racial inclinations making the decisions, no doubt with personal agendas. While MCC can make recommendations, its demands should not be entertained, if the government is in charge.
Why is there a sense of aggression in the country rather than a consultative and advisory approach? Do these groups belong to certain factions and are holding the government to ransom? One wonders.
Sleepy: MCC, you are just changing the model not the mode. Any model will work if the underlying objective is to benefit the citizens of the country. Without IPPs, will TNB be transparent in its business dealing without outside influence or you (MCC) have a selfish agenda for not wanting IPPs?
TehTarik: Fully agree with MCC. TNB has sufficient resources to manage all the IPPs. Many of the IPPs are nothing more than cash cows, at the expense of the rakyat.
Anticonmen: It is not just YTL but all the IPPs, about 10 of them who are sucking the system. Why blame YTL only? Is it because it is Chinese?
But, do you know who the real person behind the deal or deals is? No prizes for guessing. After allowing certain IPPS to milk the system, the government even paid billions to them to "buy" back their shares through 1MDB.
Do you really understand that the milking is done at three different levels? First, at the government funding level, second, at the operations level and third, at the "bailout" or buy back level.
Wake up from your slumber and put your brains to work for a change if you claim you are an NGO working in the interests of civil society.
Rule of law was cast aside and the checks and controls of an independent executive, judiciary and parliament were dismantled in the Eighties and the country slid into dictatorship so much so that the interests of the people were hijacked by a few who controlled everything.
The problem of lack of capacity by TNB to prevent blackouts at that time was probably created by’ you know who’, in order to justify the piratisation.
It's all manipulation of the system because the same person who had power to privatise, also had the power to increase TNB’s capacity or to stop increase of capacity. But the lack of capacity was blamed conveniently on TNB’s management in order to shove the piratisation down TNB's throat, as admitted by Ani Arope.
When you control everything and there is no more check and balance, it is so easy to manipulate the system to your advantage and put blame elsewhere except yourself.
Can you see this same modus operandi in every decision to privatise? There is manipulation of the system because there is total control.
Patriot1: Well, at least now we get to see cronyism in true form. After the IPPs are sorted out, maybe the next stop should be the country's highways?
Baiyuensheng: If government goes by this NGO's suggestion, TNB must be in a position to absorb such a huge capex in its book and by itself.
EPF money should not be used for this purpose. It is best that private resources be utilised and open tenders be carried out. This always works - not direct negotiation where Umno cronies are given advantages and obscene profit.
I doubt the government or TNB now are able to muster the resources required to fulfill the country’s future electricity needs. The government is already breaching its debt level. This NGO never considered this?
CucuMalaysia: TNB is another government linked company (GLC). That's why our electricity tariff keeps going up, up, up. What other solution will help the rakyat who has to pay for incompetence and greed, mismanagement and poor management.
GodBless: No doubt YTL is a government crony, but it is also a capable company which can really perform. MCC is interested in Chinese bashing or they are really serious about justice for nation?
Who can guarantee that TNB will not dish out the contracts to more inefficient Umno cronies? After this episode, I am sure YTL will transfer its remaining 15 percent of its business empire out of Malaysia. We as a nation will lose out even more.
SSDhaliwal: IPP concessions removal is a welcome move but only if translates in transparent contract awards and reduced electricity tariffs.
Cks: TNB is but another highly inefficient GLC which only thrives with government patronage and protection. There is nothing wrong in awarding to YTL or any other company if it won with a competitive bid in an open tender.
Anonymous_1395655275 Finally some folks woke up. But the question is, can TNB run or operate more efficiently than the IPPs?
Apa nama One more project under NEP (never ending policy); enriching one race at the expense of others.
The above is a selection of comments posted by Malaysiakini subscribers. Only paying subscribers can post comments. Over the past one year, Malaysiakinians have posted over 100,000 comments. Join the Malaysiakini community and help set the news agenda. Subscribe now .
For more news and views that matter, subscribe and support independent media for only RM0.36 sen a day:
Subscribe now