Sarawak takes over Bakun HEP
PM officially hands over the 2,400MW-capacity plant to the state at historic event
This project should be handed over to the Sarawak state government. For me it makes sense to give it to the people of Sarawak because it can contribute to the development of Sarawak, the value can be maximised with the proper plans by the state government, particularly in the development of SCORE (Sarawak Corridor of Renewable Energy).
BAKUN: The Ba ku nH yd roe le ct ric Plant ( HEP) dam which has the capacity to generate 2,400MW of energy was officially handed over to the Sarawak state government in a historic event at the plant here yesterday.
Speaking at the ceremony, Prime Minister Datuk Seri Najib Tun Razak said the construction of the power station in Sarawak was in line with the national commitment and effort to reduce the emission of greenhouse gas intensity.
The project also demonstrated the close collaboration between the federal and state governments based on a win-win situation, with the federal government benefiting from the monetised asset and Sarawak acquiring a mega project to develop the state, he added.
“This project should be handed over to the Sarawak state government. For me it makes sense to give it to the people of Sarawak because it can contribute to the development of Sarawak, the value can be maximised with the proper plans by the state government, particularly in the development of SCORE ( Sarawak Corridor of Renewable Energy),” he said.
Najib described Bakun HEP as the biggest hydroelectric dam in Malaysia and the second largest concrete face rock filled dam in the world and the biggest ever project implemented by the government.
The power station was handed over to the Sarawak government fol lowing t he purchase by Sarawak Energy Bhd of the total equity of Sarawak Hidro Sdn Bhd from the Finance Ministry and Federal Land Commissioner for RM2.5 billion
Datuk Seri Najib Tun Razak, Prime Minister
last August.
It is located on the Balui River of the Upper Rejang Basin, 37 km upstream from Belaga town and the fi rst hydroelectric plant under the SCORE.
Its development involved the relocation of almost 10,000 people living along the banks of the Balui River.
From 1998, communities were resett led from the riverside villages and longhouses to a township with modern amenities, improved access to education and health facilities.
“I took the decision to hand over the project to the Sarawak state government and to the locals based on two perspectives.
“One, Sarawakians wi l l have the feeling of owning and managing Bakun and it can boost the spirit among the locals,” said Najib, adding that there is a huge potential to develop tourism attractions in the lake.
He added the project can give a huge impact to the surrounding areas if it is managed by the state government.
Najib said the demand for energy in Sarawak has increased from 1,000MW in 2009 to 3,500MW to- date and there is no need for the energy to be exported to Peninsular Malaysia.
The ownership of the power station, he added, would not only allow for the offer of lower electricity tariffs to the local people but also help draw more investors.
Najib also noted that Sarawak generated about 54 per cent of its electricity needs from its hydroelectric dams.
He said he was informed that the next phase that the state government would embark into after taking over the dam is to supply the energy to the nearby longhouses.
Before the handover ceremony, Najib approved an allocation of RM76 mi l l ion to provide 1.21 hectares of land to each of the residents involved in the resettlement programme as a result of the development of the Bakun dam.
BAKUN: The handover of Bakun Hydroelectric Plant ( HEP) symbolises the sincerity of Prime Minister Datuk Seri Najib Tun Razak to Sarawak, says Chief Minister Datuk Patinggi Abang Johari Tun Openg.
The chief minister was speaking at the official handover of Bakun HEP to the Sarawak government yesterday.
“I have been serving under three prime ministers out of six and compared to other prime ministers, Najib is the only prime minister who often visited Sarawak – about 60 times and he had visited 161 places throughout Sarawak compared to Dr Mahathir,” he said when comparing the contribution of former premier Tun Dr Mahathir Mohammad during the latter’s 22 years in office.
Abang Johari recalled that recently Dr Mahathir had branded the people of Sarawak as lazy, greedy and slow.
“I can be a witness on the policies of his 22 years as prime minister,” he said.
He added that under the leadership of Najib, the state government had been able to implement its development agenda smoothly.
“I speak based on facts, it is true and is happening,” he said, pointing out that this augured well with his digital economy agenda, one of which is to empower local talents. Another sign of good cooperation between the state and federal government, he pointed out, was the RM1 billion- allocation approved
I have been serving under three prime ministers out of six and compared to other prime ministers, Najib is the only prime minister who often visited Sarawak – about 60 times and he had visited 161 places throughout Sarawak compared to Mahathir. Datuk Patinggi Abang Johari Tun Openg, Chief Minister
by Najib to rebuild and repair dilapidated schools in the state.
“When I became the chief minister, taking over from Tok Nan ( Pehin Sri Adenan Satem), I met the prime minister. In our discussion we talked about the energy production from Batang Ai, Murum and now Baleh dam, Bakun was under the federal government.
“When I inquired about Bakun, Najib said: Abang Jo, you want Bakun I give it to you,” he said.
According to Abang Johari, the decision to give Bakun to Sarawak showed Najib’s love for the people of Sarawak in order to allow them to manage their own power besides giving the state government the advantage of managing all its hydro dams.
“We have the authority to manage our energy supply, with the electricity used by the industries,” he said.
Pointing out that with the takeover of Bakun, Sarawak now has the lowest electricity tariff in the country, he said it is necessary to add value to Bakun dam to bring more growth to the northern region through the tourism sector, livestock rearing and agriculture.
“After taking over Bakun, the state government has decided to form the Lake Development Authority for us to manage the lakes,” he said, adding that it will be a vehicle for the state government to come up with long term plans for the local community.
It was announced on March 8 last year that the Sarawak government had reached an agreement with the Ministry of Finance ( MoF) and the Federal Land Commissioner to acquire 100 per cent equity stake in Sarawak Hidro Sdn Bhd ( SHSB), owner and operator of Bakun Hydroelectric Plant through Sarawak Energy’s whollyowned subsidiary SEB Power Sdn Bhd.
Prior to the acquisition, Sarawak Energy’s whollyowned subsidiary Syarikat Sesco Berhad purchased all the output produced by Bakun HEP through a Power Purchase Agreements ( PPA) signed in 2011.
Deputy chief ministers Datuk Amar Douglas Uggah Embas and Tan Sri Datuk Amar Dr James Masing, Minister of Utilities Dato Sri Dr Stephen Rundi Utom, Local Government and Housing Minister Datuk Dr Sim Kui Hian, State Secretary Tan Sri Datuk Amar Morshidi Abdul Ghani and Sarawak Energy chairman Datuk Amar Abdul Hamed Sepawi were among those present.