The government has conceded that the first generation of independent power producers (IPPs) were offered "relatively favourable terms" at the inception of the IPP programme in the 1990s.
A question-and-answer (Q&A) paper published by the Ministry of Energy, Green Technology and Water and distributed at a press conference chaired by minister Peter Chin in Putrajaya today, to explain issues related to the gas subsidy provided to the power industry and IPPs reads, "But this was necessary to address the tremendous growth (in demand) for electricity in the early 1990s and to ensure sufficient and reliable supply of electricity,"
To the question 'What is so special about the first generation IPPs?', the document answers: 'Being the first batch of IPPs, the risks were relatively unknown for the country as we were still low on the learning curve. Thus, the developers had to secure the best possible terms in the power purchase agreement (PPAS) to provide sufficient comfort for all stakeholders especially the financial institutions.'
To the question 'What is so special about the first generation IPPs?', the document answers: 'Being the first batch of IPPs, the risks were relatively unknown for the country as we were still low on the learning curve. Thus, the developers had to secure the best possible terms in the power purchase agreement (PPAS) to provide sufficient comfort for all stakeholders especially the financial institutions.'
No comments:
Post a Comment