KUCHING: State-owned Sarawak Energy Bhd (SEB) is taking over the Bakun hydroelectric dam from the federal government for RM2.5 billion.
Sarawak Chief Minister Datuk Abang Johari Abang Openg said SEB would buy the entire interest in Sarawak Hidro Sdn Bhd, the owner and operator of the Bakun dam.
An agreement had been reached in principle that the ownership and operation of the Bakun dam would be fully returned to Sarawak through the acquisition of shares in Sarawak Hidro, said Abang Johari.
SEB and the Finance Ministry officials, he said, were finalising details and expected to sign the share sale agreement in two months.
“The move would enable us to have full ownership of all electricity generation facilities in Sarawak with greater flexibility in optimising the management and operation of electricity supply,” he said.
SEB would also settle all Sarawak Hidro outstanding loans, said Abang Johari, here, yesterday.
The potential takeover will include the land surrounding the dam and reservoir area from Federal Land Commission.
“This is one of the strategic decisions to transform Sarawak into digital economy as we need power to install fibre-optic installations and other works,” said Abang Johari.
“Apart from that, we might be able to further reduce our electric tariff or sell power to neighbouring countries,” he added.
The 2,400-megawatt (MW) Bakun dam, Malaysia’s largest, was completed in 2010 and partly commissioned in the following year before being fully commissioned in July 2014.
Apart from Bakun, Sarawak has the 944MW Murum Dam and the 100MW Batang Ai Dam.
The 1,200MW Baleh dam is expected to commence this year.
“We will only look into building more dams when there’s a need. Otherwise, four are enough for now,” said Abang Johari.
SEB closed 6.32 per cent or three sen higher at 50.5 sen with 301,400 shares traded yesterday.