Pandan lawmaker Rafizi Ramli believes there is no reason for China-owned Edra Power Holdings Sdn Bhd to target the Employees Provident Fund (EPF) and Retirement Fund Incorporated (KWAP) in its plan to raise RM5.28 billion financing via sukuk for Malaysia’s largest power plant project.

“I am asking (prime minister) Najib (Abdul Razak) to make sure this Chinese investment is truly a Chinese investment. If you say that we sell (Edra) to this Chinese company, then they can bring in the money," the PKR vice-president said in a press conference in Parliament today

“Fair enough, bring their money (but) don't take money from EPF and KWAP,” he added.

Edra, Malaysia’s second largest independent power producer was sold by 1MDB to China General Nuclear Power Corp Ltd in 2015.

Tenaga Nasional Berhad, on the other hand, is the sole customer of the gas-powered plant which will be built in Alor Gajah, Malacca. The plant is expected to begin operations in 2021.

Vice-president ii of corporate finance and special officer Fion Chan had confirmed that Edra was targeting investors such as the EPF, KWAP and insurance companies like AIA and fund managing companies to build the plant.

When asked if Edra was looking only for local investors in the financing exercise, she said; "Because Malaysia's ringgit market is very liquid, we have enough ringgit to support the full project and so, we mainly focus on the local market, but of course, whoever is interested can come in and invest.”

Rafizi, meanwhile, said he was raising the matter as he had continuously warned about mega projects handed to Chinese companies that will ultimately be funded by Malaysians.

“It’s clear that the ‘investment from China’ mentioned by Najib doesn’t exist. Instead, projects are given to companies from China and work is given to Chinese contractors but funded by Malaysians.”

Citing Edra chief operations officer Mohamad Nor Ali who had said that 30 percent of the project would comprise of local contents, Rafizi wondered on the number of jobs that will be given to locals.

“Once the plant starts its operations, China-owned Edra will be the main power producer to TNB which will lead to dependency on a Chinese company to provide electricity.

“I want Najib to answer how much electricity would TNB have to buy from this Chinese company.

“I urge Najib to fulfill his promise that the sale of this former 1MDB subsidiary to a Chinese company was for profit and to obtain foreign investment. But it’s clear how Malaysians have been lied to again,” added Rafizi.