January 21, 2009 - PETALING JAYA: Tenaga Nasional Bhd (TNB) and the Finance Ministry will have a majority stake in a special-purpose vehicle set up to build the undersea cable for the RM16bil Bakun hydroelectric project.
The Sarawak government, which has a majority stake in the Bakun dam, will hold a minority stake.
It is believed that the Economic Planning Unit (EPU), which last year received a proposal from TNB to undertake the undersea cable project via a consortium comprising the Finance Ministry and the Sarawak government, has given an agreement in principle and an official announcement will be made soon.
The cable project involves the development of two 700km underwater cables, estimated at RM9bil, which will transmit power from the 2,400-MW Bakun dam to the peninsula.
Sources said TNB would operate and own a minority stake in the Bakun dam.
“TNB’s proposal, which was submitted to the EPU last year, involves the national utility taking up a stake that is below 50% in the undersea cable project as it wants to avoid having to consolidate the debts into its books.
“If it gets the majority stake by tying up with the Finance Ministry, it will possibly involve the utility taking up a stake of about 30%-40% in the undersea cable project,” a source said.
The Bakun dam is owned by Finance Ministry-owned Sarawak Hidro Sdn Bhd.
The Sarawak government and Sarawak Energy Bhd (SEB) hold the majority stake in the dam.
In June last year, Sime Darby withdrew from taking up a 60% stake in Sarawak Hidro as well as a 60% stake in the company set up to lay the high voltage direct current transmission link undersea cables, although it had received the Government’s approval in principle.
The decision, arrived at after a “thorough review,” was made by the board which was of the view that the “project economics do not fit in with the group’s business strategy.”
However, Sime Darby has said it would, via a consortium, continue its role as a contractor in building the dam.
Following that, both TNB and SEB had put in a bid to own the transmission link and dam projects. TNB, however, mentioned that it would leave it to the Sarawak government and SEB to hold the majority stake in the Bakun dam.
