KUALA LUMPUR, Nov 11 — 1Malaysia Development Bhd (1MDB) has clarified that DuSable Capital Management was not and never a signatory to power purchase agreement (PPA) and owner of 1MDB Solar Sdn Bhd (1MDB Solar).
1MDB said this in a factual clarification on its 50 megawatt (MW) solar power plant in Kedah for which it engaged DuSable to assist with project development.
“We trust the clarification will address the unsubstantiated allegations being made by certain opposition politicians, who have selectively extracted and misrepresented information relating to 1MDB,” it said Wednesday.
1MDB said it engaged DuSable to assist with project development of utility-scale grid connected solar power generation capability, for which DuSable Capital Management was remunerated US$506,000 for costs and expenses.
On March 18, 2014, 1MDB received a Letter of Award from the Ministry of Energy, Green Technology and Water.
In the Letter of Award, 1MDB was granted the right to develop multiple utility scale solar photovoltaic power plants, with an aggregate capacity of up to 500MW.
However, 1MDB was required, among others, to undertake detailed feasibility studies, execute a PPA, source equity and debt financing and procure other requisite approvals for each individual solar power plant.
On April 11, 2014, 1MDB, via its unit, 1MDB Synergy Sdn Bhd and Yurus Private Equity Fund I, L.P. (Yurus PE Fund) entered into a Master Joint Venture Agreement (Master JVA), to jointly develop up to 500MW of solar power plants in Malaysia.
DuSable Capital Management was appointed as the investment adviser to the Yurus PE Fund.
The Master JVA shareholding was 49 per cent held by Yurus PE Fund and 51 per cent, 1MDB Synergy.
On April 12, 2014, 1MDB, via its unit 1MDB Solar entered into a PPA with Tenaga Nasional Bhd for the construction of a 50MW solar power plant in Kedah.
“It is important to highlight that Yurus PE Fund and DuSable Capital Management were not and never the signatories to this PPA, nor did either party, at any time, have ownership of 1MDB Solar,” 1MDB said.
1MDB and DuSable Capital Management were subsequently engaged in discussions for a partnership to develop, finance and construct the proposed 50MW solar power plant in Kedah.
However, no project level joint venture agreement was reached between the parties for this solar power project or any other individual solar power project.
On Oct 2, 2014, as part of the IPO plans of Edra Global Energy Bhd (Edra), 1MDB acquired the entire 49 per cent interest of Yurus PE Fund in the Master JVA, for a final amount of US$69 million.
This acquisition ensured that 1MDB and Edra would own 100 per cent of the rights to develop up to 500MW of solar power plants, prior to the launch of a proposed IPO of Edra.