1Malaysia Development Berhad (1MDB) will not be able to meet the deadline to commence the 3B power plant that was awarded to them because it is having cash flow problems to finance the project, the Energy, Green Technology and Water Ministry has admitted.

The ministry, in a written reply recently, said that 1MDB is having problems to find funding for the Jimah East Power project at Mukim Jimah, Port Dickson.

However, the government said that 1MDB is not letting go of the project but is instead trying to become a “lead player” in a consortium to commence the project.

However, DAP’s Petaling Jaya Utara MP Tony Pua warned that with every annual delay of the project, Malaysians will have to bear RM644 million in higher electricity prices, coupled with the fact that another power plant awarded to Malakoff is also facing delays.

Pua said that at the very least 1MDB must be fined for its inability to start the project as expected.

 

"The award of the power plant concession contracts to 1MDB had become an even more expensive exercise for ordinary Malaysians. Project 3B was awarded to 1MDB despite 1MDB not submitting the lowest tariff rate," said Pua and Serdang MP Ong Kian Ming in a joint statement.

 

"Is this immense burden on Malaysians justified just to bailout the heavily indebted 1MDB?" they asked.