BAKUN DAM TO START SUPPLYING POWER END OF NEXT YEAR

KUCHING (Malaysia), Nov 5 (Bernama) -- The Bakun hydroelectric dam in East
Malaysia state of Sarawak may begin producing 300 megawatts (MW) of electricity
in the last quarter of 2010, according to Zulkifle Osman, managing director of
Sarawak Hidro Sdn Bhd, the project developer.

He said the Bakun dam, the world's second highest concrete-faced rockfill
dam, is expected to be completed by end of 2011, with eight hydroelectric
turbine-generator units with total installed capacity of 2,400MW for supply to
Peninsular Malaysia, east Malaysia states of Sabah and Sarawak, Brunei and
Kalimantan on Borneo island.

"The impoundment of the dam will start in January next year. However, it is
subject to the state government's approval and the impoundment will take a
minimum of eight months," Zulkifle said at a media briefing here Wednesday
night.

"The first turbine will start operating when the whole reservoir flooded. By
then, the Bakun Hydroelectric dam will generate 300MW of electricity by October
or November next year," he said.

Sarawak Hidro, a wholly-owned subsidiary of the Minister of Finance
Incorporated Malaysia, has been entrusted to develop and manage the Bakun
hydroelectric project since May 1, 2000.

A special-purpose vehicle, comprising national energy provider Tenaga
Nasional Bhd (TNB), Sarawak Eenergy Berhad (SEB) and the Sarawak government as
shareholders, will be set up to operate the Bakun dam based on a lease.

The Bakun dam is the largest hydropower project in Malaysia with an
installed capacity of 2,400MW. It is located on the Balui River in the upper
Rejang River basin, 37 kilometres upstream from Belaga town.

The project was conceived to support the federal government's fuel
diversification policy, by providing a renewable and clean source of energy and
aiming to significantly contribute to meet the increasing demand of electricity.

Sarawak Hidro's general manager Tan Yong Long said construction of the Bakun
dam to generate 2,400MW electricity was 92.84 per cent completed as of September
this year.

Tan said the dam is expected to be fully operational by end of 2011, and
would still require the laying of submarine cables to transmit electricity to
Peninsular Malaysia.

"The first 675-kilometre long submarine cable will link Sematan in southern
Sarawak to Tanjung Leman in Mersing in southern state of Johor, and is expected
to be completed in 2016 to transmit 1,700MW of electricity to Peninsular
Malaysia," he said.

On the environmental impact, Tan said wildlife found in areas that are to be
inundated were being rescued and moved to unaffected areas, together with
valuable flora such as rare plants and trees.

"We are clearing of a total area of 455 hectares at selected areas for
future development along the shoreline, within 15 radius of the dam. The work
commenced in January this year," he said.

"On wildlife rescue, we collaborated with Sarawak Forestry Corporation on at
least six targeted islands formed during the impoundment, within 50 kilometres
upstream of the dam. Plant rescue started in July this year. Animal rescue will
commence once impoundment starts," he added.
-- BERNAMA