Tenaga Nasional Bhd (TNB) has received a letter of invitation from Energy Commission (EC) to submit its proposal to take over 1MDB`s 70 percent stake in the RM11 billion Project 3B coal power plant (Jimah East).

"EC in consultation with the government has accepted TNB`s participation as the lead developer in the project for the development of 2x1000MW coal fired power plant in Jimah in consortium with Mitsui Co Ltd (Mitsui). The statement was made one day after TNB claimed last Thursday that it has yet to receive any official notification from the government.

TNB has defended the deal and denied it was a move to bail out 1MDB. “Based on financial analysis, the project is expected to have a positive impact on the earnings of TNB. It is not a bailout of 1MDB,” said TNB president and CEO.