TIME TO REVIEW CONTRACTS WITH IPPS

KUALA LUMPUR, Feb 5 (Bernama) -- The contracts with the independent power
producers (IPPs) need to be reviewed because the huge power reserves are a
burden to Tenaga Nasional Bhd (TNB), said former prime minister Dr Mahathir
Mohamad.

"We have tried to review the contracts but the IPPs were adamant, saying
this will affect investor confidence. So we did not do it," he said after
chairing an exclusive strategy session on global financial crisis here
Wednesday.

Dr Mahathir said the present situation warranted the revision.

"Our reserves are too big and TNB has to bear the cost which it has to pass
to the consumers," he said when commenting on calls to further reduce gas and
electricity tariffs. TNB is Malaysia's main power supplier.

On another note, he said, the motor vehicle industry would also be impacted
by the economic crisis and it has to reduce costs.

However, he said, there were some problems regarding imported cars such as
non-declaration of the real costs and non-payment of tariffs.

"So, it is important to investigate whether my allegations are true or not,"
he said.
-- BERNAMA