Amanah wants clarification on TNB's RM13.13 billion coal import deal

SHAH ALAM - Parti Amanah Negara (Amanah) has urged Energy and Natural Resources Minister Datuk Seri Takiyuddin Hassan to lay out the details of the Tenaga Nasional Berhad (TNB) coal import agreement with Indonesian exporters, involving US$3 billion (about RM13.13 billion) for three years.

Amanah deputy president Datuk Seri Salahuddin Ayub said the amount was a US$700 million increase compared to the previous year's contract valued at US$2.3 billion.

"The Energy and Natural Resources Minister stated that the 30 per cent increase was due to the hike in the price of commodities in the international market.

"The procurement agreement should be scrutinised as 65 per cent of the coal supply used by TNB for electricity generation is imported from Indonesia.

"Looking at the total cost involved, the minister should clarify whether the agreement was made through an open tender or through a direct negotiation," he said in a statement on Friday.

Commenting further, Salahuddin questioned why the long-term agreement negotiation was not postponed for a few more months as agencies such as Fitch had predicted that the market price for coals would drop by the end of this year.

He said TNB's action rushing into the decision to ink the agreement with Indonesia when the coal prices were soaring as a result of the Russia-Ukraine war has raised doubts.

"I understand the importance of entering into an agreement like this to ensure the supply of important fuels is not affected, but it is not an excuse to brush aside transparency and good governance in the management of important contracts like this," he said.