Brunei sets US$5b development plan

Brunei sets US$5b development plan

BANDAR SERI BEGAWAN (Reuter): Brunei's new BR$7.2 billion
(US$5 billion), five-year development plan will focus on building
power plants and roads, expanding the seaport and developing the
capital, official sources said yesterday.

Brunei's Sultan Hassanal Bolkiah announced the plan in a
speech marking the country's 13th national day since gaining
independence from Britain in 1984.

The tiny sultanate on Borneo island has long depended on oil
as the source of wealth for its 280,000 people. With recoverable
reserves expected to last only another 20 years or so, the
country is seeking to diversify the economy.

"The local industry cannot depend too much on the domestic
market, Hassanal said in a radio broadcast on Saturday night. "We
should therefore explore the vast opportunities in the region and
in the international arena."

The previous five-year plan allocated BR$5.0 billion, mostly
for telecommunications, water and power projects.
The sultan did not give details of the plan, which may be issued
later this week by the Finance Ministry.

Finance Ministry officials said power projects, using the
country's considerable gas deposits, would get the single biggest
allocation. New roads are also on the drawing board for the
largely jungle-covered country.

The plan also contemplates a major redevelopment of the
capital city of Bandar Seri Begawan, home to some 50,000
residents, most of whom live on the Brunei River in Kampong Air,
or "Water Village".

The plan calls for installing plumbing, sanitation and other
infrastructure in the village, a patchwork of thousands of houses
built on stilts over the river and a big attraction for tourists.

The sultan, who by some accounts is the world's richest man
with a net worth of more than $40 billion, officiated at Sunday's
National Day celebrations.

Flanked by his three brothers, who have key cabinet positions,
the 50-year-old monarch watched 22 parachutists bearing 13
Bruneian flags float down to the parade ground after jumping from
air force helicopters.

Brunei is a member of the Association of South East Asian
Nations (ASEAN) with Indonesia, Malaysia, the Philippines,
Singapore, Thailand and Vietnam. It has close financial links to
Singapore and cultural ties to Malaysia.