Friday, December 31, 2010

Belated Comments Received Regarding Mudajaya

Ah.. here's a reply to a OLD post, SC Article On Mudajaya Reveals Serious Allegations Made Against Mudajaya

Best I highlight it.

  • Eric said...

    The cost of IPP depends on the specifications and quality so as motocar. All cars with same cc will cost differently. Just compare proton 1.8 litre with continental car with 1.8 litre. The price difference is huge. Using cost per/MW as argument is just lame justification.

    By the way, has anyone considered the possibility of Indian Partner reducing their investment price in order for Mudajaya to increase theirs. Then there will be no inflation of cost for the plant. CIMB, pls do your homework!

    Companies recover their investment thru profit from contract awarded back is to a certain extend normal but must be arms length and it must be done without round tripping. I mean investment must be paid up first then only recover your investment over time. In Mudajaya's case it is earn a bit from procurement contract and then pay for the capital in IPP also by a bit. The process is repeated over and over. Any donkeys also can raise capital in that manner.

    How much Mudajaya was given profits to recover their basic/original investment cost is unknown. However, it is certain that they are given the profits to pay for portion of investment that has been inflated, the same portion of investment value that the Indian partner has deflated, I guess.

Do see also last month's posting Quick Look At Mudajaya's Earnings


mansid said...

Happy new year to all Malaysian bloggers. From: Malaysian Economy Update