Group wins main package of dam project
Group wins main package of dam project
KUALA LUMPUR (AFP): A multinational group has clinched the 15-
billion-ringgit (US$6-billion) contract for the main package of
the giant Bakun dam project in Malaysia's eastern state of
Sarawak, a news report said Saturday.
The group comprises 120 companies from Brazil, France, Italy,
Japan, Germany, Malaysia, Mexico, South Korea and Sweden,
according to Ekran Bhd., the main contractor for the dam.
The main package involves building a 205-meter (222-feet) high
main dam across the Balui River to generate 2,400 megawatts of
electricity for Malaysia by 2002.
"These companies are the best in the hydro-power construction
and management industry," Ekran executive chairman Ting Pek
Khiing was quoted as saying by The Star. The name of the group
will be announced soon, said Ting.
"This consortium has given an assurance that it will complete
the project in 60 months, a year ahead of schedule," he said.
When completed, the dam will be Malaysia's biggest power plant
and largest dam.
The whole project is expected to cost more than 25 billion
ringgit, including the three undersea 1,300-kilometer (8,125-
mile) long cables -- costing 10 billion ringgit -- linking the
dam to Peninsular Malaysia.
The dam is expected to fuel the country's industrialization
drive by channeling power through power giant, Tenaga Nasional
Bhd., which has a monopoly on electricity supply here.
The power sold to Tenaga would be worth about 2.5 billion
ringgit per year, according to Ting.
"We will have a concession for 30 years and about 75 billion
ringgit worth of electricity from Bakun will be supplied to the
national grid owned by Tenaga," he said.
However, energy price purchase talks, which started last July,
have stalled, according to Tenaga. Tenaga has sought the
government's intervention in the talks.
Ekran has said it will not budge from its asking price of 18.5
sen (7.4 cents) per kilowatt hour, a price Tenaga considers too
high.
Ekran's Ting, meanwhile, announced Friday between 100 million
ringgit and 120 million ringgit will be paid out to compensate
the 9,500 natives to be displaced by the dam project.