Friday, August 24, 2012

Genting power assets sale a 'sensible deal'? What UTTER NONSENSE!

We all know that the IPP deals were not favourable to Malaysians and especially to TENAGA, the national electricity company.
It seems the editor of the Business Times was having an off day when they labelled  Genting power assets sale a 'sensible deal'
This deal makes no sense from a logical or business perspective. After having consumers pay for the secret IPP deals, we now have to swallow this.

The most logical price to pay for this plant is book value only after a thorough plant survey and MAYBE a little for some goodwill.

Within 3 years, this plant will be almost worthless in Malaysia unless they can negotiate a new IPP deal.

Is this one way of forever keeping the agreements a secret? Or it could be the testing of the mechanism to buy out all the other IPPs at ludicrous prices too?

So how is 1MB going to manage this plant? I suppose they could create another SYABAS-type model and pay the CEO something like RM400k a month?

Most likely there will be the usual upgrading and refurbishments resulting in another RM500m in more dubious deals. The only economic transformation progression (ETP) for Malaysia in this deal is going from indebtedness to Greek-like bankruptcy.

The headline is hilarious but misleading. This is not a sensible deal for Malaysians but it is certainly one SWEETHEART deal for Genting!

photo:storms gathering over Malaysia's economy