• Last minute cancellation of the “Thirst 2015” concert at the Mines International Exhibition and Convention Center gives Malaysia a bad name

    Media Statement by Dr. Ong Kian Ming, MP for Serdang on the 26th of April, 2015

    Last minute cancellation of the “Thirst 2015” concert at the Mines International Exhibition and Convention Center gives Malaysia a bad name

    The “Thirst: We are all Stardust” 2015 concert that was supposed to be held at the Mines International Exhibition and Convention Center (MIECC) was cancelled at the last minute yesterday on the 25th of April, 2015.

    Here are the sequence of events, according to information available to me, that led to this cancellation.

    The Serdang IPD had issued a letter on the 25th of March, 2015, saying that they had no objections to the staging of this event (Appendix 1).

    MPSJ had issued a temporary permit to the organizers, Future Sound Asia Sdn Bhd, on the 21st of April, 2015 for the staging of the concert subject to certain conditions being fulfilled including ensuring that there would be no one under the age of 18 attending the concert and ensuring that no Muslims would be allowed to attend the concert (Appendix 2).

    On the afternoon of Friday, 24th of April, the police sent a letter to MPSJ stating that they would not support the concert. As a result, MPSj was forced to withdraw the entertainment permit to the organizers of the event (Appendix 3). The reason for the withdrawal of the police support for this event was not stated. This is the ONLY reason why MPSj withdrew the entertainment license.

    The last minute attempts by different parties to request for the assistance and support of the police for this event failed. As such, the organizers had no choice but to cancel the event and to promise refunds to all those who had bought tickets to the event.

    While the police have the right not to support any entertainment event based on valid and legitimate reasons, it is unfair to the organizers of any large scale event when the withdrawal of support comes at the 11th hour and without any stated reason. To my knowledge, the organizers had obtained the support of the Anti-Dadah Agency and the Narcotics Division who would place their officers on duty on the night of the event. To my knowledge, the organizers and the sponsors had already spent millions of ringgit to organize and promote this event.

    It is very disappointing for the ticker holders, the organizers, the performers and all the other stakeholders that this event had to be cancelled at the last minute. It also dents the reputation of Malaysia as a destination to hold international level entertainment events because of the possibility that such events may have to be cancelled at the last minute due to the withdrawal of permits.

    At the very least, I hope that the police can come out to give an explanation on why they withdrew their support for this event at the last minute. Moving forward, I call for a transparent Standard Operating Procedure (SOP) on the part of the police for such events so that all stakeholders can take the necessary steps to prevent such a cancellation from happening again, without legitimate reasons given.

    Dr. Ong Kian Ming
    Member of Parliament for Serdang

    Appendix 1: Letter from the IPD Serdang stating that they had no objections to the staging of the event (March 25, 2015)

    Appendix 2: Temporary Permit (Permit Sementara) issued by MPSJ on the 21st of April, 2015



    Appendix 3: Withdrawal of the entertainment permit by MPSj after receiving a letter from the IPD Serdang that the police had withdrawn their support for this event

  • 为什么1MDB给予22%的关税税率上调其尚未建成50MW太阳能农场?

    (2015年4月20日)行动党沙登区国会议员王建民博士的新闻媒体声明

    为什么1MDB给予22%的关税税率上调其尚未建成50MW太阳能农场?

    根据《The Edge每日财经》的报道,一个马来西亚发展有限公司(1MDB)的太阳能发电厂,售电价将从每千瓦41仙,获调高至50仙,涨幅高达9仙或22巴仙。[1] 根据报道,消息称:“之前的售电价似乎太低,整个工程似乎不可行。而新售电价是根据Edra Global能源达9%的内部回酬率(IRR)而洽谈。”

    若该报道属实,那似乎很多事情有待能源,绿色工艺及水务部长(KeTTHA)厘清。首先,如果1MDB公司旗下的Edra Global,觉得之前的每千瓦时41仙的售电价太低,那KeTTHA为何不允许让全马最大,可产50兆瓦电力的太阳能发电厂计划进行公开招标呢?实际上,KeTTHA一开始就应该优先将公开招标放在首位,而不是透过直接谈判的方式来颁授该计划给没有任何兴建和经营太阳能发电厂经验的1MDB。公开招标将能确保国家能源有限公司(TNB)享有最佳的售电价,并为未来的太阳能发电场计划设下参考标准。

    根据市场标准,每千瓦时50仙的售电价仍然是偏高的。

    据该永续能源发展机构(SEDA)网站所显示的售电价,太阳能发电介于10兆瓦至30兆瓦的电力回购计划(FiT)最低售价正逐年降低(请参阅以下图表1)。这下降是取决于太阳能电池板的成本由于技术的改进而迅速下降。

    图表1:安装太阳能发电量介于10兆瓦至30兆瓦的每千瓦时最低售电价

    Tarikh pemasangan Tarif Galakan 1 Jan 2012 1 Jan 2013 28 Mac 2013 1 Jan 2014 15 Mac 2014 1 Jan 2015
    Tarif Minimum setiap kWH 85 sen 78.2 sen 68 sen 54.4 sen 61.2 sen 49 sen

    Sumber: www.seda.gov.my

    针对2015年1月1日开始安装的太阳能发电装置,最低售电价是49仙(参阅下图)。因此,我们更有理由期待可产50兆瓦的太阳能发电厂能够提供比每千瓦时49仙更低的FiT售电价。第一,以其规模的太阳能发电厂毫无疑问地将享有更大的经济规模优势,比如更低的每单位安装成本和每单位土地收购成本。第二,此太阳能发电厂将会在未来才竣工,而这意味着革新的科学技术,将进一步地降低太阳能发电厂的兴建成本。第三,1MDB和国能之间所拟定的合同是高达25年,这比在电力回购计划所给予的21年更长。更长的合约时间,意味着保证回酬时间更长,也意味着更多的商家会愿意以较低的售电价,以便换取更长的合约时间。

    有鉴于此,这次售电价的调高不禁让人怀疑,是为了提供即将上市的Edra Global更有利的融资条件以便帮助其母公司1MDB纾困。

    王建民博士
    沙登区国会议员

    Grafik 1: Tarif Galakan bagi Solar PV (Bukan Individu) bermula dari 1 Januari 2015

    [1] http://www.theedgemarkets.com/en/article/1mdb%E2%80%99s-solar-farm-gets-tariff-hike

  • Mengapa 1MDB diberi kenaikan tariff sebanyak 22% bagi ladang solar 50Mwnya yang belum lagi dibina?

    Kenyataan Media oleh Dr. Ong Kian Ming, Ahli Parlimen Serdang pada 20 April 2015

    Mengapa 1MDB diberi kenaikan tariff sebanyak 22% bagi ladang solar 50Mwnya yang belum lagi dibina?

    Hari ini, Edge Financial Daily telah melaporkan bahawa projek cadangan ladang solar 1MDB telah diberi kenaikan tariff elektrik dari 41 sen bagi setiap kWH kepada 50 sen setiap kWH, iaitu peningkatan sebanyak 9 sen atau 22%.[1] Menurut laporan tersebut, alasan yang diberi adalah kerana “tarif sebelum ini adalah terlalu rendah bagi projek tersebut untuk dilaksanakan. Tarif baru ini telah dirunding atas asas bahawa Edra mengehadkan kadar pulangan dalaman bagi projek tersebut pada maksimum 9%.”

    Jika laporan ini benar, maka Menteri Kementerian Tenaga, Teknologi Hijau dan Air (KeTTHA) perlu memberi penjelasan berkenaan banyak perkara. Pertama, jika Edra Global yang merupakan anak syarikat 1MDB menganggap kadar tarif asal iaitu 41 sen untuk setiap kWH adalah terlalu rendah, mengapa KeTTHA tidak melakukan tender terbuka di pasaran bagi cadangan pembinaan ladang solar 50MW yang merupakan projek ladang solar terbesar di Malaysia? KeTTHA sepatutnya membenarkan tender terbuka terlebih dahulu sebelum memberikan projek ini secara rundingan terus kepada 1MDB, yang sebenarnya tidak berpengalaman dalam membina dan menjalankan operasi sebarang projek solar. Tender terbuka untuk cadangan pembinaan ladang solar ini sudah pasti dapat memberi jaminan harga terbaik kepada Tenaga Nasional Berhad (TNB) dan dijadikan sebagai satu penanda aras bagi projek ladang solar yang akan datang.

    Malahan, boleh dikatakan juga bahawa kadar tarif 50 sen bagi setiap kWH adalah terlalu tinggi menurut standard pasaran.

    Merujuk kepada kadar tarif yang diterbitkan di laman web Pihak Berkuasa Pembangunan Tenaga Lestari Malaysia (SEDA), kadar minimum tarif galakan (FiT) bagi pemasangan tenaga solar kategori 10MW hingga 30MW telah makin jatuh secara stabil (Jadual 1). ‘Kadar penyimpangan’ ini diperkenalkan kerana kejatuhan mendadak kos pemasangan panel solar yang disebabkan oleh peningkatan teknologi.

    Jadual 1: Tarif Minimum bagi setiap kWH untuk Tarif Galakan pemasangan PV Solar antara 10MW dan 30MW

    Tarikh pemasangan Tarif Galakan 1 Jan 2012 1 Jan 2013 28 Mac 2013 1 Jan 2014 15 Mac   2014 1 Jan 2015
    Tarif Minimum setiap kWH 85 sen 78.2 sen 68 sen 54.4 sen 61.2 sen 49 sen

    Sumber: www.seda.gov.my

    Bagi pemasangan yang bermula pada 1 Januari 2015, kadar tarif minimum adalah 49 sen (Lihat grafik di bawah). Terdapat alasan yang bagus untuk menjangka sebuah ladang solar 50MW akan menawarkan tarif yang lebih rendah daripda 49 sen bagi setiap kWH di bawah Tarif Galakan SEDA. Pertama, ladang solar dengan skala besar tersebut sudah tentu mempunyai skala ekonomi yang besar, contohnya kos pemasangan per unit yang lebih rendah dan kos pengambilan tanah per unit yang lebih murah. Kedua, ladang solar tersebut dijangka siap dalam tempoh yang lama, yang bermakna penambahbaikan teknologi mungkin akan menyebabkan kos solar PV jatuh lagi. Ketiga, kontrak yang dicadangkan antara 1MDB dan TNB adalah selama 25 tahun, iaitu melebihi kontrak 21 tahun di bawah Tarif Galakan. Kontrak yang lebih panjang bermaksud jaminan pulangan untuk lebih lama, yang bermakna bahawa lebih ramai pihak sudah pasti sanggup menerima tawaran kontrak yang lebih lama untuk kadar tarif yang lebih rendah.

    Di sebalik semua ini, kita tidak dapat mengelak dari mengesyaki bahawa peningkatan tarif ini merupakan cara untuk menyelamatkan 1MDB dengan memberi syarat kewangan yang lebih baik bagi membolehkan anak syarikat, Edra Global untuk tersenarai.

    Dr. Ong Kian Ming
    Ahli Parlimen Serdang

    Grafik 1: Tarif Galakan bagi Solar PV (Bukan Individu) bermula dari 1 Januari 2015

    [1] http://www.theedgemarkets.com/en/article/1mdb%E2%80%99s-solar-farm-gets-tariff-hike

  • Why was 1MDB given a tariff rate hike of 22% for its yet to be built 50MW Solar Farm?

    Media Statement by Dr. Ong Kian Ming, MP for Serdang, on the 20th of April, 2015

    Why was 1MDB given a tariff rate hike of 22% for its yet to be built 50MW Solar Farm?

    It was reported in the Edge Financial Daily today that the proposed 1MDB Solar Farm has been given a hike it its electricity tariff from 41 sen per kWH to 50 sen per kWH, an increase of 9 sen or 22%.[1] The reason given, according to this report, was that the “previous tariff was deemed simply too low for the project to be feasible. The new tariff was negotiated on the basis that Edra caps its internal rate of return for the project at a maximum of 9%.”

    If this report is true, then the Ministry for Energy, Green Technology and Water (or KeTTHA) has a lot of explaining to do. Firstly, if Edra Global, a subsidiary of 1MDB, felt that the initial tariff rate of 41 sen per kWH was too low, why did KeTTHA not allow for an open tender in the market for the proposed 50MW solar farm, which would be the largest solar farm project in Malaysia? In fact, KeTTHA should have allowed for an open tender in the first place instead of awarding this project to 1MDB, which has no experience of building and operating any solar projects, on a direct negotiation basis. An open tender for this proposed solar farm would have ensured the best pricing for Tenaga Nasional Berhad (TNB) and set the benchmark for future solar farm projects.

    An argument can also be made that the tariff rate of 50 sen per kwH is too high by market standards.

    According to the tariff rates found in the website for the Sustainable Energy Development Authority (SEDA), the minimum feed-in-tariff (FiT) for solar power installations which are more than 10MW but less than 30MW has been dropping steadily over time (Table 1 below). These ‘digression rates’ were introduced because of the rapidly falling installation costs of solar panels due to improvements in technology.

    Table 1: Minimum Tariff per kWH for Solar PV Feed in Tariff for installations >10MW but less than 30MW

    Date of FiT installation 1 Jan 2012 1 Jan 2013 28 March 2013 1 Jan 2014 15 March 2014 1 Jan 2015
    Minimum Tariff per kWH 85 sen 78.2 sen 68 sen 54.4 sen 61.2 sen 49 sen

    Source: www.seda.gov.my

    For installations starting on the 1st of January 2015, the minimum feed in tariff was 49 sen (See graphic below). There are very good reasons to expect a 50MW solar farm to be able to offer a tariff lower than the 49 sen per kWh under SEDA’s Feed-in-Tariff. Firstly, a solar farm of that size will inevitably have greater economies of scale e.g. lower per unit installation costs and lower per unit land acquisition costs. Secondly, the solar farm will only be completed at a later date which means that the costs of the solar PV can drop further because of improved technology. Thirdly, the proposed contract between 1MDB and Tenaga is for 25 years which is longer than the 21 years under the Feed in Tariff. A longer contract means a longer period of guaranteed returns which means that more players would have been willing to accept a lower tariff in exchange for the longer contract.

    Given this information, one cannot help but to think that this tariff hike is an attempt to help ‘bail out’ 1MDB by providing more favourable financial terms for its subsidiary, Edra Global, to be listed.

    Dr. Ong Kian Ming
    Member of Parliament for Serdang

    Graphic 1: Fit Rates for Solar PV (Non Individual) starting from the 1st of January 2015

    [1] http://www.theedgemarkets.com/en/article/1mdb%E2%80%99s-solar-farm-gets-tariff-hike

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