Sunday, January 30, 2011

Indonesia keen on Bakun power supply

Indonesia is interested in getting power supply from the Bakun hydroelectric dam now being built in Sarawak, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said today.

He said that Indonesian leaders expressed their interest in the dam supplying power to Kalimantan during his recent visit to Jakarta.

"They believe that the dam will have more than enough power for the whole of Borneo (which comprises Sabah, Sarawak, Brunei and Kalimantan)," he told reporters after presenting Chinese New Year hampers to senior citizens in Ipoh, Perak.

The Bakun dam, scheduled to be completed next year, is planned to produce 2,400 megawatts of electricity.

Husni said the Finance Ministry and the Sarawak government were continuing negotiations on the sale of the dam.

"The federal government wants the matter settled quickly so that development can be continually carried out in Sabah and Sarawak," he added.

The Sarawak government had said that it wanted to buy the dam for RM6 billion, but was prepared to raise the bid to RM7 billion depending on the mode of payment.

The overall cost of the dam had been estimated at RM7.3 billion, but this had been exceeded because of several problems that arose during construction.

Husni said the government was planning several projects for Sabah and Sarawak under the New Key Economic Areas programme, but adequate power supply was needed to implement them. -- Bernama

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