21.12.2015 - How 1MDB overpaid for its power assets
Most of 1MDB’s power assets were acquired within a 16-month time frame between March 2012 and July 2013. The spending spree raised many questions at the time, which remain unsatisfactorily unanswered as at writing time. The underlying logic of buying over independent power producers (IPPs), as understood by market observers, would likely be the strong cash flow. In simple terms, IPPs have a steady stream of cash flow by virtue of their power purchase agreements (PPAs), which are iron-clad agreements that guarantee a steady stream of money in exchange for a steady level of power generation as stipulated in the agreement...............................................Full Article: Source
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