By: Joseph Tawie
KUCHING: The RM315 million Bengoh Dam is coming up, but standing in its way are the Bidayuhs who will not shift out to make way. They are not against development. They simply want justice – fair compensation. But it appears they will not be getting it and they are very angry.
Former Dayak Bidayuh National Association president, Peter Minos, said the Bengoh agencies are inconsiderate for ignoring the plight of the Bidayuhs from four villages which are affected by the construction of the dam.
Some 1,000 Bidayuhs from 394 families are to be relocated elsewhere.
“If the relevant dam agencies give the four villages the right compensation for the abandoned land – houses, basic facilities and utilities and job opportunities – then the affected Bidayuhs will not pose a problem at all.
“But if they are not given proper compensation, they will naturally act as they do,” said Minos, who is a senior leader of Parti Pesaka Bumiputra Bersatu.
“Treat the Bidayuhs well, talk to them, meet them and reason things out. They can and will be good partners in development...
“The problem is that some people are not really interested to meet and talk with the villagers... they just want to impose and dictate terms...
“We hope the Bidayuh leaders will help the villagers sort things out with the relevant agencies,” Minos said.
Minos was commenting on a news report that the Bidayuhs from Kampung Taba Sait are reluctant to move to a new site despite the offer of a free house and a plot of land for each family to farm.
But they are not satisfied with the compensation. What they want are new houses built on a higher ground of what was left of their native customary right land.
According to the villagers, the compensation was insufficient given that the whole village is to be submerged under water.
The three-acre of land is not enough for them to farm and they are not allowed to rear livestock.
At first, the authorities promised to give them infrastructure like access roads, electricity and they were allowed to keep their NCR land for farming.
But according to the villagers, the promises are not going to be fulfilled, and they feel they have been cheated.
Besides Kampung Taba Sait, other villages affected are Kampung Bojong Pain, Kampung Rejoi and Kampung Semban.
Work on the dam started in August 2008 across Sungai Sarawak Kiri and is expected to be completed by year-end.
It is expected to submerge about 8.72 square km of land, the size of 173 Olympic swimming pools, destroying some rare wildlife species such as the fern family of lycopodium and two carnivorous pitcher plants from the nepenthes family.
Other wildlife found there include two species of hornbill, 50 species of birds, seven species of bats, 14 species of mammals and 52 species of fish.
Awarded to Naim Cendera, a company closely associated with the family of Chief Minister Abdul Taib Mahmud, the dam, once completed, is expected to store some 144.1 million cubic metres of water meant for the Batu Kitang water treatment plant.
The storage will increase water production at Batu Kitang plant from 786 to 2047 mega litres per day (MLD).
The current demand for water in Kuching is 635 MLD.
Non-governmental organisations and opposition parties have condemned the government for constructing the dam.
Source: Free Malaysia Today
URL: http://www.freemalaysiatoday.com/fmt-english/politics/sabah-and-sarawak/9607-angry-bidayuhs-wont-budge-from-bengoh-dam-area-
Wednesday, August 25, 2010
Tuesday, August 17, 2010
Penan Long Luar Longhouse gutted in mid-night fire
A one row of 14-door Penan wooden longhouse at Long Luar in Pelieran river at the headwaters of Murum river was reduced to ashes, when gutted to the ground in wee hour of 18th June night. 
The fire occurred at about 2.00 am mid-night. The Penans believed that the fire was caused by a spilled kerosene lamp that was accidentally kicked by a boy while in deep slept. The fire spread swiftly and took less than half an hour to raze the whole wooden longhouse.
At the time, most of them were already aslept, however were shaken and awakened by those families and relatives next door to the fire, who has noticed it earlier as it razed.
The fire had mercilessly taken away everything they owned and left them with the clothes on their backs. They could not help to salvage their personal belongings and heirlooms at all as the fire was too flammable. Fortunately no life was lost in the mishap. The fire made more than 60 families (250 people) homeless. The longhouse was built sometime in 1996.
Most of the victims are now taking temporary shelter with relatives at another Penan longhouse in Long Tangau which is situated about 500 metres away from Long Luar. Long Tanga
u is made up of 18 doors/units. Hence, it could not accommodate a large number of Penans from Long Luar. Some Penan families have to build makeshift huts around the village as well as in the nearby forest.
The costs of the damage were yet to be ascertained. Due to the remoteness of the village, information about the mishap was rather slow. At present, there hasn’t any assistance given to them. They are appealing for immediate help especially on basic items such as foods, cooking utensils and clothes.
Village headman, Madai Salo was with tears as he narrated their sorrow and despair at the fire that had completely destroyed their longhouse.
Long Luar is one of the six (6) Penan villages in Pelieran river area affected by the mega Murum hydroelectric dam project in Belaga District in the central region in the interior of Sarawak. The Long Luar Penans are strongly opposing the dam project. The other Penan villages are Long Tangau, Long Wat, Long Singu, Long Menapa and Long Malim. Also affected is a Kenyah-Badeng village at Long Umba in Danum River. There are about 1,000 Penans in the area are affected by the Murum dam project.
Penans Appeal:
Long Luar Penans are appealing for help. Any assistance and donations to the Penans of Long Luar, be it financially or in-kinds are most welcome. If you need to visit them, kindly contact us for information and logistic arrangement at: scanenetwork@gmail.com or call us Tel: 085 423044
The fire occurred at about 2.00 am mid-night. The Penans believed that the fire was caused by a spilled kerosene lamp that was accidentally kicked by a boy while in deep slept. The fire spread swiftly and took less than half an hour to raze the whole wooden longhouse.
At the time, most of them were already aslept, however were shaken and awakened by those families and relatives next door to the fire, who has noticed it earlier as it razed.
The fire had mercilessly taken away everything they owned and left them with the clothes on their backs. They could not help to salvage their personal belongings and heirlooms at all as the fire was too flammable. Fortunately no life was lost in the mishap. The fire made more than 60 families (250 people) homeless. The longhouse was built sometime in 1996.
Most of the victims are now taking temporary shelter with relatives at another Penan longhouse in Long Tangau which is situated about 500 metres away from Long Luar. Long Tanga
u is made up of 18 doors/units. Hence, it could not accommodate a large number of Penans from Long Luar. Some Penan families have to build makeshift huts around the village as well as in the nearby forest.The costs of the damage were yet to be ascertained. Due to the remoteness of the village, information about the mishap was rather slow. At present, there hasn’t any assistance given to them. They are appealing for immediate help especially on basic items such as foods, cooking utensils and clothes.
Village headman, Madai Salo was with tears as he narrated their sorrow and despair at the fire that had completely destroyed their longhouse.
Long Luar is one of the six (6) Penan villages in Pelieran river area affected by the mega Murum hydroelectric dam project in Belaga District in the central region in the interior of Sarawak. The Long Luar Penans are strongly opposing the dam project. The other Penan villages are Long Tangau, Long Wat, Long Singu, Long Menapa and Long Malim. Also affected is a Kenyah-Badeng village at Long Umba in Danum River. There are about 1,000 Penans in the area are affected by the Murum dam project.
Penans Appeal:
Long Luar Penans are appealing for help. Any assistance and donations to the Penans of Long Luar, be it financially or in-kinds are most welcome. If you need to visit them, kindly contact us for information and logistic arrangement at: scanenetwork@gmail.com or call us Tel: 085 423044
Sunday, August 15, 2010
Bakun dam delay worries Sarawak Hidro
By Joseph Tawie
The state government has still not given the green light for the impoundment of the RM7.3 billion Bakun dam, which is already behind schedule, and this is causing concern to Sarawak Hidro Sdn Bhd. The delay will cost Sarawak Hidro, the owner and developer of the dam, a staggering amount in interest payment on its loan to the Employees Provident Fund.
Sarawak Hidro is wholly owned by Minister of Finance Inc.
“From next year, an additional interest payment of RM10 million per month will be incurred as the dam is already five months behind schedule.
“It will take seven months from the impounding date for the dam to reach its minimum level in order to generate power,” Sarawak Hidro managing director Zulkiflie Osman told reporters recently.
Sarawak Hidro wanted the impoundment to begin by end-2010 to curb the adverse impact on costs, waiting time and staff morale.
But the state government appears hesitant, perhaps due to political consideration as the state election must be held before July next year.
“If the dam is to be impounded now, it will become a very hot political issue in the coming election and it may even cause the downfall of the state government,” said a veteran politician.
“From the moment the dam is impounded, there are fears that the mighty Rajang River may dry up even though there are some small rivers including the Baleh River to supply water to the Rajang River,” he said.
Backlash
But the water from these rivers may not be sufficient enough to make the Rajang River navigable.
“If the Rajang River should dry up, the people are worried that they may not be able to communicate by express boats. They will suffer economically, the fish and other marine life will diminish, and houses constructed along the river banks will be affected as the water level sinks. Houses will become cheap in downstream towns like Kapit, Kanowit, Sibu and Sarikei.
“People will start to migrate to other towns,” said the politician who declined to be identified.
Understandably, the state government is unwilling to take that risk even though consultants have assured them that nothing of that sort would happen.
But the people are unlikely to believe or trust the government.
These are the issues that the state government does not want the opposition to use to frighten the people in the coming election.
The delay is also expected to cause potential investors in Sarawak Corridor of Renewal Energy (SCORE) to put on hold their investments as they are uncertain of the power supply.
Many are thinking of diverting their investments elsewhere as they cannot wait much longer.
Profits
Besides political consideration, the delay could also be attributed to the on-going discussions between Sarawak Hidro and Sarawak Energy Bhd (SEB) for the sale of the dam to SEB.
Sources close to the state government said that SEB has offered to buy the dam for RM6 billion, but Sarawak Hidro wants to let it go for RM8 billion.
The state government, unhappy with the federal government’s decision to scrap the under cable transmission to the Peninsula, wants SEB to take full control of the project so that it can supply electricity to SCORE without any federal government influence.
Of course, the state government and SEB have other reasons for taking over the dam.
The dam will operate initially on one turbine that is capable of generating up to 300MW and, by the end of next year, between 600MW and 900MW will be available for use of industries in Sarawak.
Sarawak needs about 900MW.
By 2020, all the eight turbines will be fully utilised to produce 2,420MW and with power from the Murum dam, the total capacity can easily reach 3,344MW.
The 95-metre high Bakun dam is the second largest in the world and is expected to submerge an area of 700 sq km, displacing some 10,000 natives of Kayan, Kenyah and Penan origins.
In addition to the Bakun, Murum and Bengoh dams, the state government is planning to build 11 more dams in the state – FMT
Source: Hornbill Unleashed
URL: http://hornbillunleashed.wordpress.com/2010/08/16/8810/
Wednesday, August 11, 2010
DAP: Stop the dam constructions
By: Joseph Tawie
KUCHING: Sarawak DAP wants an immediate halt to the construction of 11 dams in the state as only companies belonging to Chief Minster Abdul Taib Mahmud’s family members stand to benefit. “Both Cahaya Mata Sarawak (CMS) and Naim Cendera are owned by family members of the chief minister.
"CMS is the sole supplier of cement in Sarawak, while Naim Cendera is a construction company; only these two will benefit,” said Chong Chieng Jen, state DAP secretary.
“The people of Sarawak and the taxpayers will not only lose but will also be held to ransom,” he added.
Besides the Bakun and Murum dams now under construction, the government intends to build 11 more dams including the Baram and Bengoh dams.
“These dams are impractical and economically not viable. Trees will be destroyed, the eco-systems affected and the natives displaced,” said Chong, the Bandar Kuching MP.
“The future of our children will be bleak as the state coffers will be depleted to build these dams.”
Excess supply
He said that there is no point in building more dams as the current power needs of the state are only 900MW, which was more than sufficient.
“With power supply from the Bakun and Murum dams, the power capacity in the state will be increased to 2,400MW.
"This exceeds our needs. Since we do not need so much power, all these electricity will go to waste.
“Nor can we export power to the Peninsula as the construction of undersea cables is too expensive,” he said, adding that the Peninsula has an excess of 40% power and does not require electricity from Sarawak.
Chong also urged the state government to reduce the industrial and commercial tariff of electricity in the state, as electricity generated by the Bakun dam is much cheaper, he said.
Source: Free Malaysia Today
URL: http://www.freemalaysiatoday.com/fmt-english/politics/sabah-and-sarawak/9105-dap-stop-the-dam-constructions
KUCHING: Sarawak DAP wants an immediate halt to the construction of 11 dams in the state as only companies belonging to Chief Minster Abdul Taib Mahmud’s family members stand to benefit. “Both Cahaya Mata Sarawak (CMS) and Naim Cendera are owned by family members of the chief minister.
"CMS is the sole supplier of cement in Sarawak, while Naim Cendera is a construction company; only these two will benefit,” said Chong Chieng Jen, state DAP secretary.
“The people of Sarawak and the taxpayers will not only lose but will also be held to ransom,” he added.
Besides the Bakun and Murum dams now under construction, the government intends to build 11 more dams including the Baram and Bengoh dams.
“These dams are impractical and economically not viable. Trees will be destroyed, the eco-systems affected and the natives displaced,” said Chong, the Bandar Kuching MP.
“The future of our children will be bleak as the state coffers will be depleted to build these dams.”
Excess supply
He said that there is no point in building more dams as the current power needs of the state are only 900MW, which was more than sufficient.
“With power supply from the Bakun and Murum dams, the power capacity in the state will be increased to 2,400MW.
"This exceeds our needs. Since we do not need so much power, all these electricity will go to waste.
“Nor can we export power to the Peninsula as the construction of undersea cables is too expensive,” he said, adding that the Peninsula has an excess of 40% power and does not require electricity from Sarawak.
Chong also urged the state government to reduce the industrial and commercial tariff of electricity in the state, as electricity generated by the Bakun dam is much cheaper, he said.
Source: Free Malaysia Today
URL: http://www.freemalaysiatoday.com/fmt-english/politics/sabah-and-sarawak/9105-dap-stop-the-dam-constructions
Bakun compensation: Dispute delaying payments
By Joseph Tawie
KUCHING: Chairman of the Bakun Resettlement Committee James Masing has admitted that some of the Bakun claimants have not been compensated. He attributed the delay to some dispute among individual claimants.
“I cannot tell you the amount involved, but there are a few million ringgit which has been deposited with the court.
“Once the dispute has been settled, the governments will pay them,” he said.
Masing, who is Land Development Minister, was commenting on a complaint by George Surang, a settler, that 15,000 people affected by the Bakun dam project have not been fully compensated.
“I admit that there are some people who have not been paid, because of claims and counter-claims by them. Because of the dispute, we do not know who to pay so we deposited the money with the court,” Masing said, adding, however, that the original number of people affected by the dam is about 10,000 and not 15,000 as reported.
On the problems faced by the settlers, Masing said the government is doing everything to help them start a new life in the resettlement area.
Surang, a Kayan who had been working with the dam project, was one of the people who had to be resettled at Sungai Asap Resettlement Scheme.
He said he worked with the project when the first hole was drilled, helped negotiate with the authorities regarding the resettlement plans in 1996 and was present when physical construction started on the river diversion tunnels.
Surang added that Bakun valley, which was still a primary jungle then, was a source of food, fish and clean water for his people. But today all these have disappeared.
Surang also pointed out the people are facing problems paying instalments for houses in the resettlement site and for electricity.
“Now the Bakun project is about to finish and our compensation has not been settled,” he said, urging the authorities to pay them their compensation for leaving their longhouses and farms.
Source: Free Malaysia Today
URL: http://www.freemalaysiatoday.com/fmt-english/politics/sabah-and-sarawak/9067-bakun-compensation-dispute-delaying-payments
KUCHING: Chairman of the Bakun Resettlement Committee James Masing has admitted that some of the Bakun claimants have not been compensated. He attributed the delay to some dispute among individual claimants.
“I cannot tell you the amount involved, but there are a few million ringgit which has been deposited with the court.
“Once the dispute has been settled, the governments will pay them,” he said.
Masing, who is Land Development Minister, was commenting on a complaint by George Surang, a settler, that 15,000 people affected by the Bakun dam project have not been fully compensated.
“I admit that there are some people who have not been paid, because of claims and counter-claims by them. Because of the dispute, we do not know who to pay so we deposited the money with the court,” Masing said, adding, however, that the original number of people affected by the dam is about 10,000 and not 15,000 as reported.
On the problems faced by the settlers, Masing said the government is doing everything to help them start a new life in the resettlement area.
Surang, a Kayan who had been working with the dam project, was one of the people who had to be resettled at Sungai Asap Resettlement Scheme.
He said he worked with the project when the first hole was drilled, helped negotiate with the authorities regarding the resettlement plans in 1996 and was present when physical construction started on the river diversion tunnels.
Surang added that Bakun valley, which was still a primary jungle then, was a source of food, fish and clean water for his people. But today all these have disappeared.
Surang also pointed out the people are facing problems paying instalments for houses in the resettlement site and for electricity.
“Now the Bakun project is about to finish and our compensation has not been settled,” he said, urging the authorities to pay them their compensation for leaving their longhouses and farms.
Source: Free Malaysia Today
URL: http://www.freemalaysiatoday.com/fmt-english/politics/sabah-and-sarawak/9067-bakun-compensation-dispute-delaying-payments
Wednesday, August 4, 2010
Penan community wants to scrutinize the Social and Environmental Impact Assessment (SEIA) Report for Murum dam project prior to approval
Press Statement
4 August 2010
Regent Hotel, Bintulu
The Pelieran-Murum Penan Affairs Committee and the residents of the Penan villages affected by Murum Hydroelectric Dam project are urging the Sarawak State Government as not to make any approval to the “Social and Environmental Impact Assessment” until it has been scrutinised by themselves and the public.
Throughout last year (2009), we have been visited by various parties claimed to do some studies related with Murum dam project. We were told that the government has carried out the Social and Environmental Impact Assessment (SEIA) in order to study the impacts of the Murum dam project that on our community.
Up till now, we do still not know the actual progress whether the said studies and the SEIA report as well as other related reports have been completed and ready for public scrutinizing.
We would like to state here that, before the approval made to the said SEIA report, we urge the government especially the authority concerned, the Natural Resources and Environment Board (NREB) to provide an opportunity to the public at large to scrutinize the SEIA report. And most importantly, our opinions and feedbacks on the said SEIA report should be seriously taken into account.
As our community is directly affected by this dam project, we should be duly informed regarding the progress of the said studies especially the effects and impacts of the project on us.
The government should also brief and clarifying to us regarding the specific development plans that is related with the resettlement programme as well as our livelihood and future.
We are totally discomfited with the construction works of Murum dam project that have been going on intensively at the project site while the said SEIA report is not confirmed of getting approval from the relevant authority concerned. What will happen if such report is not approve and what will the government do to recover back those land, forest, river and natural resources that had been destroyed?
In addition to the said SEIA report, we also call upon the government to inform us regarding the plan for resettlement area for us. Likewise, as being advised by the government, we have forwarded our suggestion for the proposed resettlement area that at Metalon River in the upper course of Pelieran River. However at present, Shin Yang Company is on the verge of clearing the proposed resettlement area for the purpose of large scale oil palm plantation. Shin Yang has entered the area illegally without our consent. If Shin Yang is allowed to extensively clear and fell the forest in the area there will be no more forest left for our community to sustain our livelihood. Thus, it would be meaningless for us to be resettled in the proposed area if it is to be developed with oil palm plantation.
We call upon the government with high hope to be involved in developing development plans for our betterment which will determine the future direction of our community. With that, as a start we urge the Sarawak state government and the Natural Resources and Environment Board to furnish us with a copy of the SEIA report to be scrutinized prior to it approval.
Statement issued by: Mr Surang Alung, Chairman Pelieran-Murum Penan Affairs Committee
Masyarakat Penan mahu meneliti laporan Kajian Penilaian Kesan Sosial dan Alam Sekitar Projek Empangan Murum sebelum kelulusan dibuat
Kenyataan Media
4hb Ogos 2010
Regent Hotel, Bintulu
Kenyataan oleh: En. Surang Alung Ju, Pengerusi
4hb Ogos 2010
Regent Hotel, Bintulu
Jawatankuasa Hal Ehwal Penan Pelieran-Murum, Belaga dan penduduk-penduduk kampung-kampung Penan yang terjejas oleh projek empangan Murum memohon kepada Kerajaan Negeri Sarawak agar tidak membuat sebarang kelulusan ke atas “Laporan Kajian Penilaian Kesan Sosial dan Alam Sekitar Projek Empangan Murum” sehingga ia-nya diteliti oleh orang awam dan mereka sendiri.
Sepanjang tahun lepas (2009), kami telah dilawati oleh pelbagai pihak yang membuat kajian-kajian berkaitan dengan projek empangan Murum. Kami diberitahu bahawa suatu Kajian Penilaian Kesan Sosial dan Alam Sekitar [Social and Environmental Impact Assessment (SEIA)] telah dijalankan oleh Kerajaan demi mengkaji akan kesan-kesan projek empangan Murum ke atas masyarakat kami.
Setakat ini kami belum tahu perkembangan lanjut berkenaan laporan kajian tersebut serta laporan-laporan berkaitan samada ianya telah siap dan sedia untuk diteliti oleh orang awam.
Di sini, kami ingin menyatakan bahawa sebelum laporan SEIA tersebut diluluskan, kami memohon kepada kerajaan dan terutamanya Lembaga Sumber Asli & Alam Sekitar (NREB) Sarawak yang bertanggungjawab untuk memberi peluang kepada orang awam supaya laporan SEIA tersebut diskrutini. Dan yang amat penting ialah pandangan dan maklumbalas kami ke atas laporan SEIA tersebut harus diambil kira dengan serius.
Sebagai masyarakat yang terjejas secara langsung oleh projek empangan ini, kami patut diberitahu berkenaan dengan perkembangan kajian tersebut terutamanya kesan-kesan dan impak-impak projek ke atas kami.
Kerajaan juga seharusnya menerangkan kepada kami tentang rancangan-rancangan pembangunan tertentu yang berkaitan dengan program penempatan semula, kehidupan dan masa depan kami.
Kami sangat khuatir dengan kerja-kerja binaan projek empangan Murum begitu giat dijalankan di tapak projek sedangkan laporan SEIA tersebut belum tentu mendapat kelulusan pihak berkuasa yang berkenaan. Apakah akan terjadi sekiranya laporan tersebut tidak diluluskan nanti dan adakah kerajaan akan membaik-pulih tanah, hutan, sungai dan sumber-sumber kami yang telah dimusnah?
Sehubungan dengan laporan SEIA tersebut, kami juga menyeru kepada kerajaan untuk memaklumkan kami berkenaan dengan rancangan kawasan penempatan semula (resettlement area) untuk kami. Kami telah mengemukakan cadangan berkenaan dengan kawasan penempatan semula yang kami pilih seperti yang dinasihatkan oleh kerajaan, iaitu di Sungai Metalon dibahagian hulu Sungai Peliran. Namun pada masa ini, kawasan yang dicadang tersebut sedang dibuka oleh Syarikat Shin Yang untuk tujuan perladangan kelapa sawit berskala besar. Syarikat Shin Yang memasuki kawasan tersebut tanpa kebenaran dari kami. Sekiranya Shin Yang dibiar membuka dan menebang hutan secara meluas di kawasan tersebut maka masyarakat kami akan tidak ada hutan lagi untuk meneruskan kehidupan. Maka, tidak ada gunanya kami untuk ditempatkan di kawasan tersebut sekira ianya dibangun dengan ladang kelapa sawit.
Kenyataan oleh: En. Surang Alung Ju, Pengerusi
Electricity glut in Sarawak
By YAP LENG KUEN
lengkuen@thestar.com.my
Tuesday August 3, 2010PETALING JAYA: There is likely to be a major power glut in Sarawak with the coming on stream of two major hydro power projects by the end of 2013 and the lack of firm commitments from investors to take the power up, industry players said.
There will be 2,400MW of capacity from the RM7.3bil Bakun Dam by the end of 2012 while a further 944MW will be added from the RM3.5bil Murum Dam by the end of 2013.
About 300MW of hydropower from the first turbine at the RM7.3bil Bakun Dam is expected to be generated by the middle of next year and 600-900MW by end of next year; by 2012, all eight turbines are expected to be in place.
Murum Dam is currently 27% completed with the RM3.5bil job awarded to China’s Three Gorges Project Corp and sub-contracted to Sinohydro Corp Ltd.
Total installed capacity from these two dams is 3,344MW but firm power that is available for use at anytime will be about 2,420MW (1,770MW from Bakun and 650MW from Murum).
Sarawak’s current capacity of 1,300MW already considerably exceeds peak demand of 900MW (excluding power to Press Metal’s aluminium smelter, which will initially take up 90MW).
Apart from organic demand, industries from the Sarawak Corridor of Renewable Energy (SCORE) are projected to start taking about 500MW in 2012 and close to 2,000MW by 2014, according to projections by Sarawak Energy Bhd, the state electricity utility.
Sarawak Energy owns Murum Dam while Bakun Dam is owned by Sarawak Hidro Sdn Bhd which is in turn wholly-owned by the Government’s Minister of Finance Inc.
“By 2015, Sarawak expects a commitment of 2,590MW which exceeds the combined firm capacity of Bakun and Murum (2,420MW),” an industry source said.
However, industry players are not convinced that commitments will materialise to increase the power demand by 2,600 MW a year, nearly three times Sarawak’s current demand.
Sarawak Hidro still does not have an agreement to sell its electricity although the dam is going to be flooded soon. Sarawak Energy can’t make a firm decision to buy from Sarawak Hidro because it in turn does not have firm commitments by anyone to purchase the power. There is no agreement on tariffs as yet.
There are said to be 25 negotiations going on with 12 potential purchasers at an advanced stage of working out the details on the term sheet, sources indicated.
“It is a Catch 22 situation,” said an industry source. “Investors want to know how Sarawak Energy is strategising its position in relation to the Bakun Dam project. Sarawak Energy needs to get the financial commitment from Sarawak Hidro in terms of their financial models (upon which the tariffs will be calculated).”
In the interim, Sarawak Energy is likely to be take power from Bakun to maintain its gas turbines and coal fired plants. “Sarawak Energy needs to do maintenance,” said the industry source. “It will probably shut down these plants and draw down the power from Bakun.”
There has been talk that Sarawak Energy is eyeing the purchase of the mammoth Bakun project at an indicative price of RM6bil (minus compensation costs for a previously botched job as well as resettlement costs) compared with the asking price of RM8bil.
The issue of tariffs is also another thorny matter with Sarawak Energy looking at just below 8 sen per KwH while their heavy offtakers – the aluminium smelters – are only talking of slightly less than four US cents (13.6 sen on an exchange rate of RM3.40 to the dollar) per KwH.
At Sarawak Hidro, various costs are imputed, making the tariff range acceptable at 10 to 15 sen per KwH.
Current talks with two potential aluminium smelters are focused on the commercial terms in the initial power purchase agreements.
These are:
·The smelter project by Cahya Mata Sarawak Bhd (CMS) and Australia-based Rio Tinto Alcan, which requires between 900MW and 1,200MW for an initial annual capacity of up to 720,000 tonnes; and
·Smelter Asia with an initial annual capacity of 330,000 tonnes requiring 600MW. Smelter Asia is jointly owned by Tan Sri Syed Mokhtar Al-Bukhary’s vehicle GIIG Holdings Sdn Bhd and China’s Aluminium Corp.
At the same time, there are ongoing talks with smaller users of 150-200MW such those in poly silicon, manganese and ferro silicon industries. They do not use as much power as smelters and cost of power is not a significant part of their overall costs.
The power glut does not stop at Bakun and Murum. Plans to build another five smaller dams are likely to commence later.
A 245MW dam can be built in Limbang if Sarawak Energy succeeds in pushing the Sarawak grid from Miri to Limbang, something which will involve passing through Brunei.
“Sarawak Energy hopes to get strong commitment from Brunei before the end of this month for up to 400MW by 2015; the first phase of offtake is for 100MW in 2012,” said the industry source.
The 100MW dam at Lawas may be built in one or two years as Sarawak Energy is expected to engage with Sabah Electricity Sdn Bhd and Tenaga Nasional Bhd on supply of power to the state, pending their decision to proceed with the 300MW Liwagu hydro dam in Sabah.
Source: The Star
URL: http://biz.thestar.com.my/news/story.asp?file=%2F2010%2F8%2F3%2Fbusiness%2F6782656&sec=business
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