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The history of the Bakun Hydroelectric Project extends
back more than thirty years, and includes the following phases:
- early 1960s: initial survey
of the hydro potential of Sarawak
- late 1970s - early 1980s: detailed
examination of the Bakun Site, and
preparation of development proposals
- 1986: decision by national government
to build the project
- 1990: postponement of the project
- 1993: renewal of the project
- 1994: awarding of project contract
to Ekran Berhard
- 1996: construction begins
- 1997: probable completion of
diversion tunnels
- 2003: projected date of completion
Initial proposals
The hydro potential of Bakun was first surveyed in the early
1960s, by the Snowy Mountains Hydro-Electric Authority of Australia,
under the Colombo Plan aid program. In 1977 a more detailed study
by Sesco (Sarawak Electricity Supply Corporation), identified
numerous potential hydroelectric sites, including Bakun. The
Masterplan Study for Power System Development in 1981 estimated
that Sarawak's technically utilizable
potential was about 87,000 GWh per annum, equivalent to an installed
capacity of 20,000 MW at a 50% plant factor. Most of the preferred
sites were located in the Upper Rajang River watershed.
The engineering and economic
aspects of the larger proposed projects, as well as the necessary
transmission lines, were subsequently studied, focusing on the
Pelagus and Bakun projects on the Rajang River. Beginning in
October 1981, the SAMA Consortium of German and Swiss consultants
(composed of Lahmeyer International of Frankfurt, Fichtner of
Stuttgart, Dorsch Consult of Munich, and Motor Columbus of Baden)
on behalf of the German Agency for Technical Cooperation, and
with the support of the
Sarawak Electricity Supply Corporation (SESCO) and the National
Electricity Board of Malaya (NEB), evaluated the feasibility
of the Bakun project. In a November 1983 report, the SAMA Consortium
recommended that the Bakun project be implemented as early as
possible, by 1995. The Bakun Project would replace the use of
coal, natural gas, or oil for power generation, thereby saving
on import costs, and possibly permitting more of these
resources to be exported. It was also concluded that while thermal
power plants would be slightly cheaper to build, a dam at the
Bakun site would have lower operating costs. This study defined
the basic features of the Bakun Project, as a dam 204 m in height
(the largest in South East Asia), of concrete arch construction,
generating 2400 MW, or 18,000 GWH/year, at an average plant factor
of 88%, and creating a reservoir of 695 sq. km. The
project would require about 12 1/2 years to be completed. Overall,
by 1985 as much as M$37 million had been spent on feasibility
studies of the project.
The Bakun Project was envisaged
as one phase of the overall development of Sarawak's hydroelectric
resources, with development at the Murum site proposed to begin
several years after Bakun. A feasibility study for the Pelagus
Project was also completed in 1982. This study concluded that
this project would not be viable unless the Bakun Project was
constructed upriver, because of the risk of early reservoir sedimentation.
The Bakun Dam, it was envisaged, would trap much of the sediments
that would otherwise flow into the Pelagus reservoir.
Sources:
o Sarawak
Electricity Supply Corporation, "Pelagus/Bakun Hydro-Electric
Projects: Ecological Impact," (German Agency for Technical
Cooperation Ltd., SAMA Consortium), July 1982. [A preliminary
study, it concluded that the reservoirs "would disturb the
ecosystem of the Rajang River basin," and that negative
effects could be reduced "to an acceptable level if the
preventive measures suggested in the report are realized"
p.1.]
o Sarawak Electricity Supply
Corporation, "Bakun Hydro-Electric Project: Feasibility
Report: Executive Summary," (German Agency for Technical
Cooperation Ltd., SAMA Consortium), November 1983. [Concludes
that project is technically feasible, and highly advantageous
economically. Project will have some negative environmental impacts,
but they can be reduced with appropriate management. Recommends
that project be implemented as early as possible, by 1995.]
Initial Controversy in the 1980s
By 1983 these studies and proposals had engendered considerable
controversy within Malaysia. Proponents argued that the project
had several benefits, and minimal, or at least manageable, impacts.
For the residents of the region, it would be a source of employment
during construction, and would stimulate indirectly creation
of other employment opportunities. Increased cash income for
these residents was advocated as the only means to change the
"backward" status of this region, and to address poverty.
The
project was also seen as providing a major impetus for development
of all of Sarawak, and ultimately, of Malaysia.
Source for
government views of the project in the 1980s:
o Malaysia
Ministry of Energy, Telecommunications and Posts, "Project
Information: Bakun Hydroelectric Project," March 1986. [Attributes
a range of economic, environmental and social benefits to the
dam, and minimal negative impacts. The link between certain claims,
and knowledge available at that time regarding potential benefits
and impacts, appears to be tenous. For example, regarding the
potential for water-borne diseases, such as bilharziosis, this
report notes that the "future Bakun reservoir shore conditions
are not considered to be a favourable environment for these
diseases to flourish" (p.14). This may be compared with
the conclusion in SESC (1982) (the preliminary ecological impacts
study), that "[s]chistosomiasis (Bilharziosis) has to be
considered as a potential and serious threat in the future lakes"
(p.23)].
However, for others, the dam's potential consequences were of
greater concern. Human implications included the displacement
of about 4,500 inhabitants, belonging to the Kajang, Kenyah,
Kenyah-Badang, Kayan, Penan and Ukit peoples. The displacement
and resettlement of these people in effect involved the loss
of their way of life, and the acceptance of a "modern"
lifestyle. By the early 1980s experience in other water development
projects had already shown that resettlement of displaced communities
is
fraught with complications and unexpected problems, rarely providing
a positive outcome.
Besides flooded forests and displaced
inhabitants, concerns included the possibility of dam collapse,
earth tremors, new waterborne diseases (including shistosomiasis,
opisthorchiasis, malaria and filariasis), disruption of downstream
water quality, and sediment accumulation behind the dam that
would render it useless within fifty years. Construction of the
dam would also result in loss of approximately 23,000 ha of good
agricultural land. There were also questions about the economic
costs of the project. It was assumed in the 1980s that much of
the necessary capital would be raised through loans from international
agencies such as the World Bank and/or the Asian Development
Bank. These loans would likely substantially increase Malaysia's
foreign debt. It was even unclear whether the nation, then in
recession, needed so much electricity. Groups opposing the project,
within Malaysia, in the mid-1980s included the Environmental
Protection Society
of Malaysia, and the Bakun Residents' Action Committee. Controversy,
and opposition to the project, had begun by 1983.
Sources for
concerns regarding the project in the mid-1980s (see also Chapter
V).
o Apin,
Teresa, "Southeast Asia's Biggest Dam Threatens to Displace
5,000 Natives," Third World Network Features, 1986.
o Bakun Dam Committee,
Environmental Protection Society of Malaysia, "Forum on
The Bakun Hydro Electric Power Project," Feb. 22, 1986.
[Speakers included: Gurmit Singh, Bong Hon Min, Colin Nicholas,
Y. B. Sim Kwang Yang].
o "Bakun: Between
Energy & Tragedy," Utusan Konsumer, February 1986.
o "SAM campaigns against
huge Rajang River dams," The Borneo Bulletin, Sept. 17,
1983.
o Bakun Residents' Action
Committee (BRAC), "Bakun H.E.P. Sarawak, Malaysia: Discussion
Paper" with "Call for International Support,"
October 17, 1985.
o "Bakun differing
opinions," Sarawak Tribune, March 21, 1985.
From the beginning, access to information about the project has
been an important element in the controversy. As of 1985, none
of the feasibility studies had been released to the public. According
to one report by project opponents, "[p]ublic discussion
on the issue was found to be at all time low, for such a massive
project of national importance". This had two immediate
consequences for debates concerning the project. First, dam opponents
sought, as a key strategy, to provide information about the project
and its impacts, to encourage debate. Second, the secrecy with
which decisions concerning this project were being made became
itself a major focus of controversy, independent of the specific
benefits and impacts of the project itself.
By 1986 the Malaysian government
had decided to proceed. However, protests by indigenous peoples
affected by the project, and by other concerned Malaysians, as
well as doubts about economic viability, led Mahathir to shelve
the Bakun Project. He announced the decision at the June 1990
international conference on conservation of tropical biodiversity.
Mahathir claimed that this decision demonstrated Malaysia's commitment
to conservation. Doubts concerning the project's economic viability,
particularly its impact on Malaysia's foreign debt, may have
been another consideration.
Project revival in the 1990s
Even after the project had been shelved in 1990, lobbying by
its proponents
continued, particularly by the Sarawak government, which urged
the federal government to revive the project. In 1992, even as
the federal government was asserting that it was continuing to
debate the project, and that it had ordered additional feasibility
studies, Sarawak officials were claiming that the federal government
had assured them the project would go ahead. On September 9,
1993, the Malaysian cabinet approved construction of the Bakun
Dam project. This followed approval of the project by the Economic
Planning
Unit in the Prime Minister's Department, in July 1993.
But at first it was uncertain
what exactly had now been approved. One early report described
a project supplying up to 36,000 MW (seven times the output of
the Churchill Falls project), through a series of "cascading
dams". Other reports suggested that the project would produce
16,000 MW, through a series of four or five dams, each creating
a small lake, together avoiding the environmental consequences
of a single large reservoir. By October 1, however, the project
had been defined more precisely as a single dam,
generating 2400 MW, at a cost of approximately $7 billion Canadian.
Sources:
o "Bakun
gets the nod," Sarawak Tribune, Oct. 26, 1992.
o "Go-ahead for Bakun
project in Sarawak," New Straits Times, Oct. 26, 1992.
o "Bakun best best
for cheap power -- CM," Sarawak Tribune, Nov. 5, 1992.
o "Bakun project won't
endanger environs: EPU," Borneo Post, Nov. 12, 1992.
o "KL approves RM10
mil for study on Bakun project," Borneo Post, March 13,
1993.
o "Bakun project to
go ahead: Chan," Borneo Post, April 20, 1993.
o "Malaysia: Go-Ahead
for New Bakun Power Project," Business Times (Malaysia),
July 21, 1993.
o "Go-ahead for RM30.6bil
Bakun project," New Straits Times, September 10, 1993.
o "2,400MW from Bakun
project likely by 2005," Business Times, October 1, 1993.
o "Bakun project to
be implemented next yr," Borneo Post, Sept. 10, 1993.
In reviving the project, Malaysia's
need for power was most often invoked as
justification. By 1993 the Malaysian economy was growing by more
than 8 percent per year, with electricity demand expanding even
faster. Blackouts in 1992 and 1993, and a predicted doubling
of demand by 2000, were harbingers of a power crisis, justifying
extraordinary efforts to expand supply. Project proponents also
believed the Bakun Dam could help reduce dependence on fossil
fuels, especially oil. Most evident, however was that this project
was consistent with an energy policy relying almost entirely
on supply. As environmentalist Gurmit Singh noted at a seminar
on the Bakun Dam in Kuala Lumpur in December 1995, "The
concept of energy conservation and certainly its implementation
is virtually absent in Malaysia."
Source for
government perspective on the need for the project:
o "The
Power Sector in Malaysia--Towards Meeting the National Requirements,"
in Malaysia Ministry of Finance, Economic Report 1994/95,
After the project's revival in
September 1993, however, it became apparent that more was at
stake than just electricity. On January 30, 1994 Mahathir announced
that the contract for constructing and operating the dam had
been awarded, without tender, to Ting Pek Khiing, a Sarawak timber
tycoon and developer, and his company, Ekran Berhad. This surprised
many, because Ting had no previous experience building dams.
What he did have, however, was the prime minister's confidence.
Mahathir's announcement was only the public culmination of intense
private lobbying, through which Ting had convinced him that his
company could deliver the project quickly. Ting had also won
the support of the Sarawak Chief Minister, because his proposal
would further the minister's goal of the privatization of utilities,
while directing business to Sarawak companies. Thus, Ting's success
reflected as much his responsiveness to the political priorities
of senior officials, as his ability to address Malaysia's energy
needs.
In the three years since Ting
won the contract, complex networks of influence have been woven
around the project, linking politicians, business leaders, and
members of their families. Much of the details of these networks
remain secret: as one account concludes, "It is a story
of which the full details may never be known, involving as it
doesmaneuverings, meetings, lobbying, rapid changes of minds
and deployments -- a real intrigue, mostly behind closed doors
and to which the public has had little access." Motivating
the participants in these networks are the prospects of large
profits, through construction contracts, timber sales, and the
eventual sale of electricity.
The project's revival also immediately
drew attention from dam builders around the world, including
Canada. In February 1994 representatives of BC Hydro, Hydro Quebec,
Ontario Hydro, and several Canadian engineering firms together
visited Malaysia, to promote their participation in the project.
During the January 1996 trade mission to Malaysia, Prime Minister
Jean Chrétien met with Mahathir, and reiterated Canada's
interest in the project, while Ontario Hydro International opened
an office in Sarawak, reinforcing
a relationship it had been developing for several years with
Malaysian power suppliers, partly through the support of the
Canadian International Development Agency. However, in recent
contracts announcements, Canadian firms have been conspicuously
absent, with firms from Europe, Latin America and Asia receiving
major contracts for the project. Asea Brown Boveri, together
with a Brazilian partner, has emerged as the major project
contractor.
When the project was announced
in September 1993, the government stated that it "will give
special consideration to the project to ensure it does not harm
the natural environment and ecology." Construction would
not begin until after public review of an environmental impact
assessment (EIA) report, as required by Malaysia's Environmental
Quality Act (1974).
Soon, however, the EIA process
started to unravel. In early 1994 Ekran assigned preparation
of the EIA report to the Kuching campus of the University of
Malaysia. Progress in the study was slow; by September 1994 field
work had not yet even begun. In February 1995 the EIA process
was broken into four parts, so that each component of the project
could be approved separately. The objective was speed: if the
reservoir EIA was
approved first, forest clearing could begin before approval of
the dam, transmission lines, or undersea cable. This maneuver,
described by opponents as "nonsensical", aroused concern
even among supporters, with a pro-government newspaper describing
it as equivalent to approving a house one floor at a time.
Reinforcing the perception that
the EIA process had become only a formality, Ting stated on submitting
the EIAs in February 1995 that clearing of the reservoir area
would soon begin, because "we are confident that all the
EIAs will be approved. There is no reason for rejection because
we have a team of experts and consultants to ensure measures
taken in the project are in compliance with the DOE's [Department
of Environment's] requirements." Government officials echoed
his confidence. And six weeks later, on March 27, 1995, the first
EIA was approved, without ever being released to the public.
But it was not even immediately
clear who had approved it. Only on April 6 was it clarified that,
retroactive to September 1994, jurisdiction over the EIA had
been transferred from the federal to the Sarawak government.
Unlike the federal government, the Sarawak government did not
require public review of the EIA report prior to approval. Soon
after, parts two and three of the EIA were also approved, again
without public review.
Finally, in May 1995 the public
was permitted to view the EIA report, including its optimistic
conclusion, that the "proposed Bakun Hydroelectric Project
will supply the nation with cheap, clean, and reliable electricity".
Shortly after its release, the EIA report was evaluated by a
team of experts assembled by the International Rivers Network
(IRN). These experts identified numerous shortcomings in the
EIA report.
The government has repeatedly
demonstrated its determination to continue the project, particularly
during the summer of 1996. On June 19th, high court judge James
Foong, ruling in favour of three Sarawak individuals affected
by the project (who had argued that they had not been adequately
consulted, as required by the Environmental Quality Act), declared
that the transfer of authority over the EIA from the federal
to the state government was invalid. The project therefore could
not continue until it met federal requirements, including public
review of the EIA. Public review, Foong stated, was essential,
since "the interaction between people and their environment
is fundamental to the concept of impact." Further, he argued,
"It makes a mockery of the whole issue to say that the EIA
can be approved first and if the public has any constructive
ideas, they can submit later. This certainly is illogical, deprivation
of good sense and sound reasoning."
Foong's decision was hailed by
environmental groups, but was viewed by the
government as, at most, an inconvenience. Officials quickly stressed
that the work would continue. The federal and state governments
filed four appeals, and on July 12, Ekran obtained a Court of
Appeal order allowing work to proceed. Since then, momentum for
the project has continued to build. During the September 1996
Sarawak elections, the major parties successfully resisted pressure
to make the dam a campaign issue.
Manipulation of public perceptions also continues. In Kuching,
Sarawak's capital, the most visible signs of the project are
billboards extolling its contribution to the state's economic
progress. (press
clippings, Bernama, Kuala Lumpur)
But doubts also continue to mount.
In July 1996 Delphi International, a British consulting firm,
warned its clients and potential investors in the project that
the Bakun Dam promised far greater risks than is typical of power
projects, and lower returns. This has presented an additional
obstacle to Ekran's efforts to attract foreign investment. Postponement
in September 1996 of the signing of a major contract between
Ekran and Asea Brown Boveri (ABB) has also hinted at the impact
of the international campaign
against the project. As of June 1997, the project is continuing:
diversion tunnels are under construction, although the date of
their completion has been delayed; and Ekran Berhard insists
that financing arrangements are in place, although there are
signs of resistance among foreign investors. Today, nearly four
years after announcement of the project's revival, its final
outcome remains uncertain.
Sources on
the project's revival:
o Spires,
Caroline, "Public Participation in the Environmental Impact
Assessment for the Bakun Hydroelectric Project, Sarawak, East
Malaysia in the period from September 1993 to June 1995."
University of London, Wye College, October 1995, pp.35-48. [summarizes
debates and decisions concerning the project between 1993 and
1995].
o Insan, Power Play: Why
the Bakun Hydroelectric Project is Damned, (Kuala Lumpur: Insan,
1996). [extensive discussion of the Bakun project -- its environmental,
economic and resettlement aspects.]
o "Bakun Dammed: Surprise
court ruling sours Mahathir's dream," Far Eastern Economic
Review, July 4, 1996: 71. [on June 1996 decision by Justice James
Foong.]
o "Bakun Dam: Test
of Sincerity," Aliran Monthly, Vol. 14(5), 1994. [On the
need for open discussion of the project.]
o "The Bakun Judgement:
Hope And Then Despair," Aliran Monthly, Vol. 16(1), 1996.
[Several articles summarizing and interpreting Justic James Foong's
decision.]
o Delphi International,
"Bakun: High Dam: High Risk?" 8th July 1996. |