Sarawak to buy Bakun dam
By Stephen Then, The Star
MIRI: The Federal Government has agreed to sell the multi-billion ringgit Bakun hydroelectric dam in Belaga to Sarawak.
The decision also means that the proposed multi-billion ringgit undersea power transmission cable between Sarawak and peninsular Malaysia is now shelved.
Minister for Energy, Green Technology and Water Datuk Seri Peter Chin Fah Kui said Putrajaya and the Sarawak government would begin negotiations to determine the amount the state would have to pay for the dam.
“The Cabinet agreed recently to the Sarawak government’s proposal to buy the Bakun dam.
“We are now negotiating with the Sarawak government on the price, principally with the Sarawak Energy Bhd (a subsidiary of the state government),” he told reporters at the Sarawak United People’s Party premises here yesterday.
On the 670km-undersea cable project which would have cost RM9bil, he said it was off for now, since electricity from Bakun would be retained in Sarawak.
“Maybe in 10 or 15 years from now, when Sarawak has excess energy, the undersea cable will be constructed.
“This also means that since the power from Bakun will no longer be transmitted to the peninsula, we will have to build more power generation plants in the peninsula to make up for the ‘deficit’ from Bakun,’’ he said.
The Bakun dam project, which is under the Ministry of Finance Incorporated, is now completed and ready for flooding.
Its construction started in 1996 and the physical construction was ready this month.
The flooding of the dam reservoir, measuring the size of Singapore island, is scheduled to start next month.
Asked if Putrajaya was asking RM8bil for the dam, Chin said, “The amount is not for my ministry to disclose as the project is under the Ministry of Finance.”
The overall cost of Bakun was officially put at RM7.3 billion, but due to costs overruns, compensation for delays and interests, the final cost of the dam is said to have escalated.
On the possibility of the peninsula now facing a power shortage, he said his ministry would try to prevent that from happening.
“If the peninsula had been assured of the power from Bakun, we would have at least 1,600 MWs to meet the needs of the industries and the people.
“To make up for the amount, we will have to rely on new power plants as soon as possible.
“The peninsula states cannot afford to build large dams. Therefore, my ministry has no choice but to approve two new coal-fired power plants that will produce 1,000 MWs each,’’ he said.
One of the plants will be in Manjong, Perak.
