Major hurdle in sale of Bakun HEP dam to Sarawak cleared when present owners sanctioned the transaction at EGM
An aerial view of Bakun HEP Dam.
Zulkifle Osman
KUCHING: The state government is on the verge of taking over the Bakun Hydroelectric Power (HEP) Dam.
The Sale and Purchase Agreement (S & P) between the Ministry of Finance (MoF) and the Sarawak Government is being finalised after the Sukuk owners of Bakun HEP Dam sanctioned the sale at an Extraordinary General Meeting (EGM) held in Putrajaya on Friday.
Sarawak Hidro’s chief executive officer cum managing director Zulkifle Osman, in disclosing this to thesundaypost, said the final phase would only include a few more ‘Condition Precedents’ to be concluded soon before the S & P is finalised and thereafter the Bakun HEP Dam will be handed over to the Sarawak State Government.
“We only need one or two more ‘Condition Precedents’ to be made before the S & P is finalised anytime in the month of August. After the S & P is signed, then we will hand over Bakun to the Sarawak Government,” Zulkifle said yesterday.
The strategic move by the State Government to acquire the 2,400 MW HEP Dam ‘lock, stock and barrel’ at a cost of RM2.5 billion from the Federal Government was announced by Chief Minister Datuk Amar Abang Johari Tun Openg on March 8 this year.
Abang Johari had said that the acquisition of Bakun HEP will spur Sarawak to become a powerhouse that will enable it to lower the tariffs for local consumers as well as exporting the power surplus to the neighbouring countries.
He said the strategic agreement was reached between him and the Prime Minister Datuk Seri Najib Tun Razak last month and the balance of the RM6 billion will be serviced by Sarawak Energy Berhad (SEB).
The Chief Minister had said that the remaining RM6 billion loan will be managed by SEB as part of its cash flow. He assured that the income from Bakun would be substantial enough even to earn profit from the sale of its power to its consumers.
Meanwhile, when contacted, Belaga assemblyman Liwan Lagang expressed the hope that the change of ownership from the Federal Government to Sarawak Government will benefit those affected by the construction of the dam.
“I hope that the new owner, SEB will have a better plan to provide all the basic necessities for those living below the Bakun Dam. At the moment, they are only bystanders of what is going on by looking at transmission lines above their heads, but they are still (using) kerosene lamps. Even their road is a roller coaster road,” he said.
Liwan also wished to see a proper plan for the entire district of Belaga.
“But on the positive side, the Dam is a game changer for all stakeholders. So now, we can plan together so that everyone will benefit from this major acquisition,” said Liwan, who is also Assistant Minister of Water Supplies.