Bakun Hydroelectric Project

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The Bakun Hydroelectric Project is a hydroelectric project in Sarawak, Malaysia on the Balui River. As part of the project, the largest concrete-faced rockfill dam in the world would be built. This would also be the largest dam in Asia outside of China. It is expected to generate 2,400 megawatts of electricity once completed.

The purpose for the dam was to meet growing demand for electricity. However, most of this demand lies in Peninsular Malaysia and not East Malaysia, where the dam is located. The original idea was to have 30% of the generated capacity consumed in East Malaysia and the rest sent to Peninsular Malaysia. This plan envisioned 668 km of overhead DC transmission lines in East Malaysia, 643 km of undersea HVDC cable and 458 km of DC transmission line in Peninsular Malaysia.

Future plans for the dam include connecting it to an envisioned Trans-Borneo Power Grid Interconnection, which would be a grid to supply power to Sarawak, Sabah, Brunei, and Kalimantan (Indonesia). There have been mentions of this grid made within ASEAN meetings but no actions have been taken by any party.


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[edit] Project History

It was originally conceived in 1993 by then-Prime Minister Mahathir Mohammad. The project was to cost US$2.4 billion and was originally scheduled for completion is 2003. The date has been revised to February 2008.

Originally the dam was to have been built beginning in 1994 by a privatised joint-venture consortium called Bakun Hydroelectric Corporation, comprising Ekran Berhad, Tenaga Nasional Berhad (TNB), the government of Sarawak, Sarawak Electricity Supply Corporation (Sesco), and Malaysia Mining Corporation Bhd (MMC). Ekran launched a rights issue to finance the building of the dam, but it was undersubscribed and Ting Pek Khing (Ekran's chairman) had to put up $500 million to take up the unsubscribed portion as part of his agreement with the underwriters. Ekran was a company of Ting Pek Khing, himself a timber businessman. Neither he nor his company had built a dam before. The entire project was not tendered publicly, and instead was awarded by government contract.

The project was halted in 1997 in the face of the Asian financial crisis. When the project was shelved, the Malaysian government took back the project from this consortium. By this time, RM 1.6 Billion had already been paid out by the government. The completed works were the river diversion tunnels by Dong Ah of Korea for RM 400 million, and to Global Upline for work completed on the auxiliary coffer dams for RM 60 million. Other works are for selective clearing of biomass, and relocation of the natives. The government had also turned over RM 1 billion for the purchase of 8 turbines.

In May 2000 it was revived through a 100% government owned company, Sarawak Hidro, but the transmission of power to Peninsular Malaysia was not part of the revived project. The construction work was tendered out as a turnkey contract.

The new civil builder is the Malaysia-China Hydro JV consortium, led by Sime Engineering Berhad of Malaysia (a subsidiary of Sime Darby and Sino-Hydro Corporation of China. Other members of the consortium are WCT Berhad, MTD Capital, Ahmad Zaki Resources, Syarikat Ismail and Edward & Sons. It targeted a completion date of September 2007. The total sum to be paid to this consortium was budgetted at RM 1.8 billion. The electromechanical works for the turbines were into two contracts to IMPSA of Brazil and Alstom of France.

In 2004, engineering consulting firm JW Knowles, was hired to study the delays in construction. Other engineering consulting firms involved in the project were Snowy Mountain Engineering Corporation, a subsidiary of Snowy Hydro Limited of Australia and Opus International Malaysia.

In May of 2004 Ting Pek Khing's name again was raised in connection with the project. A Ting-owned company, Global Upline, was rumoured to be awarded a contract to undertake "biomass removal" in the flood basin. This would allow him to harvest timber in the area without a separate permit. Issuance of timber permits has come under increased scrutiny due to political conditions and environmental concerns. However, as of December 2006 it has not been awarded.

Usage of the generated capacity was to have been by a proposed aluminium smelting plant in Similajau, Bintulu, approximately 180 km inland from the dam. The project is a joint venture between Dubai Aluminum Co, Ltd (Dubal) and Gulf International Investment Group (GIIG), an investment fund jointly set up by Malaysian tycoon Syed Mokhtar, and Dubai-based international financier Mohamed Ali Alabbar. This plant was expected to consume 50% of the power generated. The government has agreed in principle that 60% of Sarawak Hidro, the entity which owns the dam, will be sold to GIIG. Due to delays in dam construction, the plans for the smelter have since been shelved. The agreement for this smelter was originally signed in 2003 and some conditions have lapsed due to delays in construction.

At the end of 2004, the minor partners in the Malaysia-China Hydro JV consortium (Ahmad Zaki Resources Bhd, WCT Engineering Bhd and MTD Capital) will report quarterly losses due to the Bakun project. Discounting this project, they would all be operating profitably for the quarter.

  • For Ahmad Zaki Resources Bhd, this is the first time it will report losses since 1993. Ahmad Zaki estimates net losses suffered for nine months ending September 30 2004 at RM4.55 million.
  • WCT has reported a net loss of RM13.08 million for the quarter ending September 30 2004 due to the Bakun project.
  • MTD Capital reported a RM4.04 million loss in the quarter ending September 30 2004 and attributed it to "a major project undertaken by the company in joint venture with both local and foreign partners" without specifically naming Bakun.
  • The lead partner in the project, Sime Engineering reported a profit of RM521,000 for the same quarter versus a profit of RM4.18 million for the same quarter in 2003. Declines in profit were attributed to cost overruns and project delays.

[edit] Environmental Mitigation

Construction of the dam required the relocation of more than 9,000 of the indigenuous peoples who lived in the area to be flooded. The residents has been relocated to a longhouse settlement named Sungai Asap in Bakun.

Concerns were raised about such things as the relocation of people; amount of virgin tropical rainforest which had to be cut down (230 kmĀ²); possible dam collapse issues; increase in diseases with water-borne vectors such as schistosomiasis, opisthorchiasis, malaria, and filariasis; and sediment accumulation shortening the useful lifespan of the dam.


[edit] The Bakun Dam Technical Specifications

The permanent dam components are as follows:

  • Main Dam
    • Maximum height above foundation of 205m, and crest length of 750m, volume of fill is 16.71 million cubic metres.
    • Crest elevation is 235m above sea level (ASL), maximum flood level is 232m, operating levels maximum 228m and minimum 195m.
    • Reservoir area at 228m ASL is 695 km2, and with a catchment area of 14,750 km2.
  • Power Intake Structure
  • Gated Spillway
  • Power Tunnels
  • Powerhouse


[edit] External links

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