Tuesday, June 14, 2011


Talk about IPPs and the names Francis Yeoh, Syed Mokthtar al-Bukhary and Ananda Krishnan come to mind instantly. There are other indie power producers but these gentlemen stand out because they are three of the country's wealthiest men. They were already very loaded even before the IPP deals were dished out but they have been more loaded since, or so we're told.

What many of us do not realize is that the deal for YTL is beginning to become NOT as lucrative for Francis Yeoh as it used to be. Because of the nature of the Power Purchase Agreement (PPA) that he signed with the Government back then, YTL is now forced to sell electricity to Tenaga Nasional at below market price!

Betul ke? Is the PPA going to make Francis Yeoh poorer? What about Syed Mokhtar and Ananda?

Read Memahami Kedudukan IPP Sekarang by The Unspinners to understand better the IPPs and PPAs.

I'm all for a full disclosure of the PPAs as I think it is in the Government's interest to be fully transparent. Umno Ku Li's call for Royal Commission of Inquiry on IPPs, strongly supported by DAP's Lim Guan Eng, should be considered; after all, the Cabinet is also studying the IPPs. We want to know everything, not just if Anwar Ibrahim, who was Finance Minister then, had actually told Tenaga Nasional to keep its protests about a PPA to itself! Read You Diam, Ini Urusan Kerajaan!

It'd be fun!


  1. Salam Datuk,

    DSAI: I had to do it. I was afraid. He is the PM. He ordered me.

    "Itulah antara kelemahan Tun pada masa itu kerana terlalu percayakan Anwar"... Is absolutely correct.

    The Tun gets the blame and DS Najib has to resolve the shennanigans.

    Thank you

  2. Dear Rocky, because of his objection against old man DR M idea that TNB buy power from the IPP at a high price,a good man name Ani Arope have to resign.

    How can you say that IPP is no longer lucrative when Anandan,Francis,Syed Mokhtar and Genting Lim have made a fortune from it.
    The fact that TNB have to pay for power it does not need will tell all of us how lucrative this IPP business is.
    If you do not belief me ROCKY,"pergilah tanya Orang Tua DR M.

  3. Datuk Rocky Bro,

    The story about Brother Anwar Bin Ibrahim's billions ringgit stash, I have known and have heard of it for a while now. Now a disgruntled PKR member decided to tell all, when he should have revealed this a long time ago if he had the country's well being at heart, but that is another story!
    Yes, two banks, one in Singapore and one in Indonesia are asking Malaysian government what to do with the stash of the ill gotten gains!
    The government said no problem just ask the account holder to apply to Bank Negara and the problem will be solved, but of course the account holdcer will have to answer some basic question like "where did you get the money from!"

  4. What Unspinners (actually, it's all spin doctoring) is claiming is absolute Bull Shit!

    As disclosed by Ani Arope in 2006 in the STAR, it was Dr.Maha Firaun who over-rode all objections by Tenaga and awarded plum 1-sided IPP deals to cronies, against the objections of Arope and Tenaga, and then classified it all under OSA.

    None of them - AK, Francis Yeoh, Syed Mokhtar - were at any time Anwar's close buddies or cronies. This, only the whole WORLD knows.

    And YTL Power is going to lose money? For 2007-2009, YTL made profit before tax of about $1.4 billion a year and for 2010 it was about $1.7 billion.

    So where did anyone get this piece of blatant misinformation that YTL will be less profitable when it is close to having amortized all its capex incurred some 10 years ago and passes all its fuel cost increase to Tenaga, as do other crony IPP's?

    So, who does Unspinners think he's kidding?

    we are all of 1 Race, the Human Race

  5. ariff kassim7:01 pm

    Datuk -- you think DSAI will ngaku? such statement sure x de dlm minutes of meetings. Lagi senang dia tolak kot..

  6. Will the three Billionaire owners of the IPP concession be smiling from ear to ear after the IPP agreements are revealed to all and sundry?

    Interesting what happens next...

    ..for sure the smirk on the former Finance Minister and Deputy PM will be wiped when it is revealed how deep his hands got into the cookie jar.

  7. Dear George,

    A group of us (bloggers) met with TNB's current boss, Che Khaleb, recently. You may know from my previous postings that he was never my favorite personality (even thought I didnt and still dont know him personally) but sometimes you have to sit down to get down to the truth of the matter.

    In this case, we explored the PPAs, their merits and demerits. Some of the things we discussed, of course, had to be "off the record". What we (bloggers) wanted to know wsd how the PPAs and the IPPs have affected the utilities giant and us (consumers). Would it have been a better, cheaper world without the PPAs? Could TNB have produced all the power without help from the IPPs? Are the IPPs subsidized?

    Che Khaleb or anyone at his level msy noy be able to discuss some of the details openly. But after a couple of hours with him, we discovered that a lot of the claims made about (or, rather, against) the PPAs/IPPs are not necessarily factual.

    The YTL's PPA is one such case.

    if you ask me, I'd say the Government should be allowed to come out with the details of the PPA. Who knows, some credit may even go to Anwar Ibrahim for loyally helping Mahathir implement the agreements.

    After all, did we hear him whine about the IPPs and PPAs back then?

    No, right? That's what I thought.

  8. Anonymous7:52 am

    Dear rocky

    You are so right. The article was published in a blog. Therefore it must be true. Ignore the fact that no documentary or any evidence was published to substantiate the pricing and contractual terms.

  9. Since Pasquale know so much...why did he not speak all these long ago?
    Easy la..he ampu Mahathir's balls hoping to be in son-in-law.
    Now no chance..now mamak no power..he speaks up.
    This is a sly fox ...low class balless journalist.
    And where CORRPUTIONS are involved...Attan stands tall and brave to favour no one..and do speak for all poor Malaysians made suckers..by the Devil...speepy head and the devil's puppet.

  10. Tourism Minister..Yen Yen stole.
    686 Muslims declare Mohammad is a bastard...only 138 approved by Syariah Court to give up being Muslims.
    In Indonesia...all will be approved as freedom of religion is practised sincerely there.
    Here..the Malays are the ones with no freedom.
    If the Syariah Court appove all and try to convince them to come back as lost sheeps is another story.
    Arrogance of power is actually fear of loosing power.

  11. hi Attan..this IPP case may favour mamak and give point down for Anwar....if Govt. relase the details.
    I say mamak did more harm than good..and as such..one released....Malaysians may demand more to be released.
    Anwar is no fool.
    He knows UMNO B is corrupted to the core..encouraged by mamak.
    UMNO B is famous to make all things grossly overpriced.
    It seems there are billions deposited in some S'por banks by UMNO B government...and cannot come back...as Bank Negara must have reasons and details where the huge sums came from.
    UMNO B have no answers.

  12. Ayah Man11:10 am

    A paltry increase in salaries for wage earners is meant to cushion the spiralling prices of food, commodities, service charges, taxes etc. No other futher use!!
    The vision of high income economy has brought about an immediate miserable consequence of high prices,cost and general inflation... the sharp fall in purchasing value of money to the public.
    The promise and rosy picture of high income economy has not benefitted a single thing to an ordinary wage earner. Those surviving without regular pay cheques are hardest hit.
    Ironically, while actual rise in salaries has yet to happen, people are in a serious debt level having to meet a significant financial depletion.
    Traders,business houses, retailers,shop operators plus ASTRO are finding the current moments so conducive and lucrative to make even more money; REVISING THE CHARGES AND PRICING POLICIES upwards. They have all the justifications in doing so.
    About IPP, we should mention all the names of IPP ownwers plus the one in Jimak Lukut which belongs to the former NS royalty.
    Those in power that had helped the individuals,group or companies secured the IPP projects with rewardingly terms have had thier infuence and efforts more than edequately PRIZED.
    The citizens have now to share the unplesant financial burden distressingly.
    I want to see where I as an individual actually stand when the high income economy perspective in Malaysia is fully implemented

  13. Anonymous11:19 am

    Looks like someone is feeling the heat on the IPPs for public disclosure and damage control is now being performed by casting aspersions and directing the aim elsewhere so as to lessen the lashback of responsibility and accountability.
    Is this what this blog is doing as a service? To whom?

    Ready to be hired.

  14. Anonymous11:20 am

    Hahaha....bodoh punye orang...and that includes Latuk Locky. These people make money upfront through construction contracts, and not through the IPPs. YTL construction, Syed Mokhtar's construction and dredging arms, they all make money upfront by "loading" on to the contracts. The PPAs won't tell you anything. If at all, they will confuse you with terminology like capacity payments, etc etc.

    the truth is that TNB itself is so inefficient, and relied so much on government guarantees that the government had no choice but to privatise. Ask Che Khalib why TNB Janamanjung had its debts in foreign currencies guaranteed by the government.


  15. donpukppl11:33 am


    Kimak engkau la ... Aku peminat The Unspinners.

    Kau yang kaki putar alam. Bukan Unspinners.

    Kau tu akauntan penipu tak tahu debit credit.

    Aku ada baca kau kena bedal dan ban pasal nak cuba kelirukan pembaca komentar.

    Baru jadi moderator dah berlagak. Blog tak laku tapi tak tahu malu nak jadi moderator.

    Kalau kasi pakai tie dan wisel macam keling jaga kereta, mesti lagi besar kepala ...

    Tulislah blog. Kami nak tengok kau ada otak ke tidak.

    Kaki putar laam macam kau ni tak guna engagement. Dia bukan nak cari kebenaran. Cuma nak spin saje walaupun fakta salah kelam kabut.

    Cadangkan ko tadah bontot pada Anwar Ibrahim untuk diliwat. Sama2 kaki spin dan penipu yang layak sekatil.

  16. Bru

    YTL sekarang sudah mengesut ke Pakatan Rakyat. Mereka kini sudah mula menyumbang pada DAP.

    Apa dia orang ini nak bising pasal YTL lagi.

    Donplaypuk itu kutuk kami pasal dia kena ban dari komen di The Unspinners.

    Asyik lari dari topik dan memutarbelit fakta hingga sanggup menipu!

    Biasalah keling .... degil dan kaki kelahi.

  17. Anonymous11:43 am

    The formula to be a tycoon in malaysia. Ask TNB to give you a blank cheque, Give to IPP LAH. buy back MAS shares at RM 8 per piece when the market is trading at RM 3. 63. Buy bungalow at Rm 3 million below market value. this call buy low sell high tapi mesti ada cable kuat. Ininlah malaysia today , corruption rules, BERSIH CEKAP N AMANAH

  18. Anonymous12:05 pm

    As an UMNO man, I am telling my friends in the party stop having to support these wrongs; wrongs are wrongs – don't matter who was the architect.
    Don't think we can forever be in power. Can you imagine if another party forms the government, they create a Truth Commission as done by Mandela? Then all dubious contracts and projects will be subject to real forensic investigations which will make many people testicles-less.
    So, stop claiming ownership on wrongs committed. That wasn't the reason UMNO came into being.

  19. Anonymous12:08 pm

    Here is the problem with the IPP issue. People are questioning why the government finds it easy to withdraw subsidies from ordinary people but not that are paid to IPPs. This double standard raises the concern that the government protects the IPPs, coincidentally most created during Dr Mahathir's watch.
    People can argue, IPPS get subsidies so that they can charge the public lower. Otherwise they will charge the public higher rates. The next real question is if IPPs have contracts agreed by the Mahathir administration that protect them from price fluctuations, is why were they given preferential treatment. Why protect them from price fluctuations?
    Essentially, IPP's are protected from fuel price fluctuations. If the Government cuts fuel subsidy, then, the cost will be passed to the IPP's who in turn will pass it on to Tenaga and who in turn will need to raise electricity tariffs. So, in a sense, IPP's do not really benefit from the fuel subsidies.

  20. Anonymous12:08 pm

    The real issue is not why not take away subsidies from IPPs, but rather why did Tenaga and the government then agree to the price Tenaga pays to these IPP's and the "take or pay" conditions. The robber barons are holding the government at ransom and Mahathir who was the PM then, agreed to be squeezed by the balls.
    Isn't Tenaga capable of generating electricity at a much lower cost than the IPP's (economy of scale, lower cost of capital, etc)
    I read somewhere that some think tankers say that subsidies cause IPPS to be inefficient. Nope, I think subsidy causes not the IPPs but Tenaga to be inefficient or cause Tenaga to operate at sub-optimal level. Tenaga is forced to cater for daily peak and off peak demands and the broader economic cycles which means that Tenaga will have to shut off its own lower cost power stations when demand goes down because those IPP's are on a "take or pay" contract.
    Why should we be forced to pay the rates in the first place? Because we are forced to do so, would suggest that really, those responsible at that time, the bankers and the IPPS are screwing us big time. How so?
    IPPS get financing from banks right? Banks will finance only if IPPs generate higher ROIs. They must generate higher ROIs than those used and accustomed by Tenaga anyway. How do the IPPs ensure higher ROIs? Only by securing guarantees from the Malaysian government.
    So when the Anandas, The Genting people, the Berjaya People, the habibs, the YTLs came before the PM then they said in unison- we can't get financing boss IF we can't get higher rates. So the boss said OK- you charge higher rates which we guarantee in agreements which can't be revealed forever. So they answered- orite boss, we are in business!

  21. Anonymous12:13 pm

    condemn. mahathir & anwar n the ipps for all you want but the contracts are irrevocable.
    The damage Pemandu n najib is going to inflict on the future generation is even worse.
    It will create wealth for a few at the expense of the rakyat.People will get poorer as disposable income gets even smaller.
    Meanwhile the chosen ones will reap all the benefits n support to rape the country.GLCs,Petronas money will be diverted to ill defined n suspiciously speculative projects.Marginal oilfields farmed out to friends.
    MRT will be burdened by the huge upfront income.

    Study the ETP.Look at the numbers>capex,gni n jobs created.GNI=ebitda+employee compensation
    Do some simple maths n you will see the huge returns on the capex.Its 1 ringgit capex giving Rm 1 ANNUAL returns.CE remains below 30%. .

    With cost of living shooting up. . .ur going to be poor unless ur amongst the chosen one.Najib is the worse of all the PMs.

  22. Anonymous3:38 pm

    My teenage daughter asked me to send a message to the 3 RICH above:


    Hah! dia tunggu response dari orang2 ni, kalau kaya takkan RM1m pun cannot give her..

    he hehe hehehe


  23. rocky,
    anwar ibrahim is the best person to answer on this ipp's issue. he was then the finance minister and the blue-eye boy of the then pm, tun dr mahathir. but as usual, anwar will twist the facts and figures so that the rakyat will believe him and blame tun mahathir and najib's cabinet.

  24. rocky,
    anwar ibrahim is the best person to answer on this ipp's issue. he was then the finance minister and the blue-eye boy of the then pm, tun dr mahathir. but as usual, anwar will twist the facts and figures so that the rakyat will believe him and blame tun mahathir and najib's cabinet.

  25. Anonymous8:35 pm

    YTL Power just not in IPP Malaysia only. They have other business. They are selling at well below 0.20 per KWH


    Kerajaan kini panas bontot akibat isu IPP ni.

    Maka para blogger dan bala cybertrooper dikerah bagi melindungi kerajaan.

    Dengan memetik artikel dari...... jeng jeng jeng...



    Weii, kenapa tak bawak pakar ekonomi buat penerangan?

    Napa tak mintak Profesor Kangkong eco-no-mee pergi RTM buat propaganda.. opp.. penerangan?

    Mengapa tak mintak Starbiz & Edge buat artikel?

    Napa kena ambik tulisan tukang lebong? Sampai bila unspinners pernah cakap benar? Sampai bila unspinners tau apa2 tentang ekonomi? hahaha......

  27. This bloody PERWIRA always put out nonsensical comments.
    He love to boast he know how to speak and write Mandarin...but infact know one word.."Lau Ren"..always addressing me that and tell me to take this or that pills.
    Everyone is sick or this useless show off PERWIRA.
    He and Pasquale can be bosom buddies.

  28. Skilgannon10665:06 pm

    And now TNB has to buy electricity from Singapore-based power company Power Seraya, because of "temporary disruptions" in gas supply from Petronas.

    And Power Seraya is part of the YTL Group of companies!

    It doesn't say much for our energy security when TNB has to buy electricity from a Singapore IPP, does it?

    The proposed Asean Grid notwithstanding.

    Coming back to the IPPs, the agreements were signed in 1996. The buck stops with the PM then, unless he claims that he was "misled" by AI into approving the deals.