MIRI: The federal government has agreed to negotiate the proposed takeover of Bakun Hydroelectric Dam by Sarawak.

Datuk Seri Peter Chin Fah Kui

 

Without disclosing the price, the Minister of Energy, Green Technology and Water Datuk Seri Peter Chin Fah Kui said the federal cabinet has agreed in principle to negotiate the pricing based on construction cost.

“The dam which is owned by the Ministry of Finance will be purchased and taken over by Sarawak Energy Berhad,” he said in a press conference before a meet-the-people session at Sarawak United People’s Party (SUPP) headquarters here yesterday.

Chin who is also Miri MP said the proposed undersea cable project would be moth-balled pending the supply of sufficient power to meet demand in Sarawak.

The undersea cable project was initially for channelling 1,600 megawatt to Peninsular Malaysia to help to lower dependency on fossil fuel which currently stands at 90 per cent.

With power from Bakun off the plan, the ministry has decided to build two 1,000-megawatt charcoal-fired power plants — one at Manjung, Perak, and the other to be decided later. For the Manjung plant, the ministry planned to apportion the power supply to Tenaga Nasional Berhad (TNB).

Sarawak is keen to take over Bakun Dam for its energy-intensive industries in Sarawak Corridor of Renewable Energy (SCORE), including its aluminium smelting plants and other industries.

There has been unconfirmed reports that Sarawak is keen to take over Bakun HEP for RM6 billion but the federal government has offered it for RM8 billion.

Chin is keeping mum on the actual figure pending the conclusion of the relevant negotiations.

Currently, Sarawak Energy Bhd (SEB) is mulling over the idea of whether to buy or lease Bakun Dam in a long-term bid to develop the state’s hydropower and industrial sector.

SEB is looking forward to reaching an agreement with Sarawak Hidro Sdn Bhd (the owner of the dam).

Sarawak Hidro is owned by the Ministry of Finance.

After a series of delays, the project which started in 1996 is expected to be commissioned by last July following the start of impoundment of the reservoir. The 215-metre dam will power eight turbines.

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