Wednesday, 25 November 2015

Sale of Edra not sign of opening up power generation to foreigners

The proposed sale of Edra Global Energy Bhd’s entire equity stake in its power generation plants to a China state owned entity will not translate into the liberalisation of the highly-regulated industry.

The RM9.83bil transaction announced yesterday was seen as a landmark deal because it marked for the first time power plants located in Malaysia being sold to a foreign company – which is China General Nuclear Power Corp (CGN Group).

This had raised excitement in the sector because it was seen as a precedent for other Independent Power Producers (IPPs) to divest partially or wholly their interest to foreign investors.

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