Bakun Dam has put Federal Government in a tough situation-and that allows the state government to drive a hard bargain in any transaction over the dam-whether in terms of electricity tariff or a purchase price for the entire dam. Since even the SESCO could be privatised from the state government-could the Bakun Dam be 1 day, `privatised’/sold to a politician for a song-as his pension money? Could the negotiation over the terms of departure of the CM the only thing which hold up the state elections?
Sarawak wants to buy Bakun
by Samuel Aubrey
August 27, 2010, Friday(Borneo Post)
KUCHING: Chief Minister Pehin Sri Abdul Taib Mahmud yesterday did not rule out the possibility of the state government taking over the ownership of Bakun Hydroelectric Dam, now near completion.
AFTER BUSINESS: Taib smiles when Tanjong Manis MP Datuk Norah Abdul Rahman says something to him as he leaves Wisma Bapa Malaysia after the cabinet meeting.
AFTER BUSINESS: Taib smiles when Tanjong Manis MP Datuk Norah Abdul Rahman says something to him as he leaves Wisma Bapa Malaysia after the cabinet meeting.
KL said to be willing to let go for RM8 bln, just RM2 bln more than price asked by state
Sometime last year, it was announced that the government would just lease it.
“We’re trying to find out whether it is possible to buy Bakun. We are approaching the federal government whether it wants to resell (Bakun),” he told reporters at Wisma Bapa Malaysia here yesterday.
Taib earlier chaired the monthly state cabinet meeting, which was followed by a briefing on Bakun by Sarawak Energy Berhad.
An Internet news portal, Malaysiakini, had reported that the state government wanted to buy up the dam for RM6 billion, but the federal government was looking at an indicative price of RM8 billion.
The Bakun Dam, which is owned by the federal government through the Finance Ministry’s Sarawak Hidro Bhd, is expected to be finally completed by the end of the year, after 16 years of construction.
It can produce 2,400MW of electricity.
On December 12 last year, it was reported in the media that the state government was packaging a deal to lease Bakun hydroelectric dam from the federal government.
It was also reported that all the power from Bakun would go to the state in order to serve the state’s own industrial needs, especially in the Sarawak Corridor of Renewable Energy (SCORE) areas.
On another matter, Taib declined to comment about on-going tariff negotiations for electricity generated by Bakun.
“I have no comment at this stage… We don’t bring negotiations to the newspapers, you all know that,” he said.
Malaysiakini had quoted Sarawak Hidro managing director Zulkifle Othman as saying that the company had targeted the end of this year to seal the power purchase agreement with Sarawak Energy.
He was also quoted as saying that the state government needed to make adjustments to the current river transportation arrangement before allowing the impoundment as it would affect the river flow and water level of Batang Rajang.
He denied the agreement delayed the impoundment of the dam, the cost of which had ballooned from an initial RM2.4 billion when it was announced in 1986 to more than RM7 billion when completed this December.
“If we are given the green light, we are looking at October to start the impoundment, subject to the water level,” he was reported to have told Malaysiakini.
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