Wednesday, August 13, 2008

New Bidders to take over Bakun

It is reported in theedgedaily today that "Tenaga Nasional Bhd and Sarawak Energy Bhd have jointly put in a bid to take over the Bakun hydroelectric dam and the multi-billion-ringgit undersea cable project which will transmit power to the peninsula."

As revealed, Peninsular would be getting cheap power from Bakun Dam after completion of project. However, there is nothing said to benefit Sarawak. Since Penisular could get cheaper power, why not Sarawak too? We, Sarawakians are now paying the most expensive domestic electricity tariff in the whole of Malaysia.

I had asked the Minister of Public Utilities Dato Sri Awang Tengah at least twice in my questions submitted to the Dewan Undangan Negeri Sarawak during the previous Dewan sittings on whether Sarawakian will enjoy cheaper electricity tariff after completion of the Bakun Dam project, guess what, no answer has ever been furnished to me until today. What is there to hide? Unless Sarawak Energy Berhad intends to increase the electricity tariff!! Very irresponsible act of them!

Bakun Dam another BN "White Elephant" Project?

You may read below the news from theedgedaily:

13-08-2008: Tenaga and S’wak Energy bid for Bakun

KUALA LUMPUR: Tenaga Nasional Bhd and Sarawak Energy Bhd have jointly put in a bid to take over the Bakun hydroelectric dam and the multi-billion-ringgit undersea cable project which will transmit power to the peninsula.

Sources said the proposal, which was submitted to the Economic Planning Unit (EPU) and the Ministry of Finance two weeks ago, has Tenaga and Sarawak Energy taking an equal share in the dam project.

As for the undersea cable project, the two utility companies proposed that the federal government take a share, with the remaining stake to be split equally between Tenaga and Sarawak Energy.

The two parties also proposed that the overhead transmission cables from Bakun to the Sarawak coast be installed by Sarawak Energy while Tenaga will take care of the transmission lines in the peninsula.

“The proposal was submitted two weeks ago to the EPU. They are waiting for feedback,” said a source.

Second Finance Minister Tan Sri Nor Mohamed Yakcop, speaking at the launch of the SME Technopreneur Centre II in Cyberjaya yesterday, confirmed that Tenaga had submitted a proposal for the much-maligned Bakun project, but offered no further details.

Despite uncertainties over who would eventually own Bakun Dam, Nor Mohamed reiterated that the project is on schedule and due to be completed by 2010.

In a related development, Bloomberg quoted Tenaga’s chief executive officer Datuk Seri Che Khalib Mohd Nor as saying that the national electricity company would be willing to take over the cable job since Sime Darby Bhd had declined to do so.

“Since Sime is not interested, it is only logical for Tenaga to offer (to undertake) the construction of the undersea cable so as not to further delay the project,” he told the wire news service.

The cost of completing the dam has been estimated at around RM5.5 billion, while a two-year delay would add another RM500 million to the price tag. The two submarine cables are expected to cost around RM10.9 billion.

Sime Darby, which was set to purchase a 60% equity interest in the Ministry of Finance-owned Sarawak Hidro Sdn Bhd which is building the dam, pulled out in June, citing a conflict with its business strategy.

Apart from owning a stake in the dam, Sime Darby also wanted to own 60% of the cable project. The other shareholders in the company undertaking the cable project were to beTenaga and the Ministry of Finance, each with 20%.

It has been reported that Sime Darby and Tenaga could not come to a power-purchase agreement.

The mammoth 2,400 MW Bakun dam forms a pivotal part of the country’s future power-generation mix. It is expected to supply cheap power to Peninsular Malaysia post-2013, helping to reduce the country’s dependence on expensive fossil fuel. Some 1,600 MW are expected to be channelled through the 676km undersea cables from the Sarawak coast.


cookie monster said...

of all joint bidders why must choose tenega to submit a joint bid , why can't sarawak energy team up with a foreign power player who had better capabilities than tenaga to submit a joint bid ?

what peninsula is going to enjoy cheap power while sarawak gets no benefit , this is totally fact since bakun project is born in sarawak , we sarawakians should get cheaper power than our peninsula counterparts.....oh we sarawakians been sodomized once more.....or should i put it this way , sarawak is made to subsidize cheap power for peninsula at expense of all sarawakians.....its just like subsidized cooking oil was enjoyed by peninsula but at expense of sabahans.....which this claim was made by datuk yong teck lee of Sabah progressive party.

so folks of east malaysia , time to wake up from your long deep sleep & guys should know wat to do in the next coming elections......send the right warning signal to the arrogant bn...

William said...

Very funny, one Bakun Dam took more than 10 years to build but the completion date is still an unknown. Furthermore with the proposed undersea cable to the peninsula in limbo. Now the state government come out with a proposal to build 10 or more similar dams. Are they idiot or we are being fooled around?