satellite RazakSAT

A Malaysian paper published on 22 may 209 carried the news of the Malaysian first remote sensing satellite. It was to be launched on 12 Apr 2009 from US island of Kwajalein.

RazakSAT launch on April 21

Mar 12, 2009 ... After years of postponement, RazakSAT, Malaysia's first remote sensing satellite, will be blasted into space from Kwajalein Island on April 21.

thestar.com.my/news/story.asp?file=/2009/3/12/nation/...sec...

It was reported that the Science, Technology and Innovation Deputy Minister Fadilah Yusof said the satellite was to be flown from Subang to Bucholz Army Airfield, Kwajalein on March 21 by Malaysian Hercules.

RazakSAT, which is also Malaysia's second low orbit microsatellite, was developed through a colloboration of ATSB with Satrec Initiative Ltd of South Korea.

The 180kg satellite is expected to be carried into space on a Falcon One rocket owned by United States' Space Exploration Technology (SpaceX) from Kwajalein.

The 2.5mm Medium Sized Aperture Camera on the satellite is expected to provide high resolution images of Malaysia that can be applied to land management, resource development and conservation, forestry, fish migration and security.

According to Fadilah, RazakSAT, also the nation's first observatory satellite, would be launched to an orbital location specifically for Malaysia, to be known as the Equatorial Orbit.

He said the orbital location would enable observation to be made on the earth surface more often, as compared to other observatory satelites, that is, five to six times daily, during daylight.

"Compared to TiongSAT1, which was launched in 2006 and which was more experimental in nature, RazakSAT is considered a functional satellite in monitoring the earth's surface and environment," said Fadilah, adding that the satellite was built at a total cost of RM150 million.

Fadilah said for the first time, together with RazakSAT, two other satellites meant for educational purposes CubeSAT and InnoSAT would also be launched.

Meanwhile, Fadilah said Malaysia had the necessary expertise and capacity to develop its own satellite for sale to other countries.

"There is already a demand from countries like Iran to purchase satellites developed by ATSb," he added. - Bernama

Extracted from the Star.

On 25 Oct 2011, the audit report mentioned that the satellite is 37 km off target. The RM142mil RazakSAT failed to operate since it was launched.

In a test, it was supposed to target raja muda batang berjuntai forest reserve but the picture delivered deviated by 37 km. Correction was to be done by ATSB the original developer, but the subsequent check showed the same problem.

Last year, the minister for science and technology said that allocation under 10 malaysian plan for the next phase called RazakSAT2.

Malacca Monorail

The Malacca monorail had created another headline. In my opinion, it is NOT befitting to a state that self-proclaimed as a developed state, to be in the situation where the firemen had to use ladders to rescue the visiting tourist. It way carry the negative message that we are not capable of handling technology.

Smart Solution...

Mechanics are installing special ladders to enable passengers to climb down in emergency situation. Probably they do not believe that they can improve he reliability of the malacca monorail. I could imagine in the welcoming announcement, the driver will be saying.. 'ladies and gentlemen, welcome to Malacca monorail, a project to commemorate the proclamation of Malacca as a developed states well ahead of the targeted year of 2020. We assure you that this machine will take you through the intended 1.3 km journey even if we have to use our latest locally developed advance state of technology, the Malacca Retractable Ladder".

At 1,11 pm on 1 of 11 2011, the monorail halted to a stop in the middle of its journey. There is no way out, but to call rescue personnel to force open the doors and climb down the ladders.

It is rather unusual that the responsible personnel described the incident as a minor glitch and unavoidable.

As reported on 4 July 2010.

The Star reported that the Malacca monorail project is facing more delays. The much awaited rm16 million along the Malacca River was hitting another snag. The developer was unlikely able to meet the Aug 29 deadline despite the assurance from the chief minister Datuk Seri Mohad Ali Rustom.

According to the Council's chief engineer, there were still components of the projects which has yet to be completed.

The project initially ran into difficulties over the acquisition of land at Kampung Bunga Raya Pantai,” he said.
The track spans 1.6km, from Taman Rempah in Pengkalan Rama to Kampung Bunga Raya Pantai in the heart of the city. The project was launched in March 2008 as part of the state's project to tap on Malacca River as a tourist attraction.

While they might be able to complete construction of the station on time, he noted that the operators of the monorail would still be required to obtain the necessary approvals from the relevant authorities before the monorail was deemed safe for public use.

He said it usually took three weeks to obtain the certificate of fitness.

“We also need to apply for a license from the Transport Minis­try,” he added.

Rafiee estimated that the monorail would be fully operational and open to the public by the end of September.

On Wednesday, Mohd Ali visited the project site after learning that the opening of the monorail for public use had been delayed twice since May 31.

Besides the monorail, several other features such as mini roller coaster ride is also being developed at the Hang Tuah station.

The project is a joint venture between the council, state subsidiary Kumpulan Melaka Berhad and Agibs Engineering & Construction Sdn Bhd.

The fate of the malacca monorail project remind us of the situation of eye of Malaysia, which was abandoned due to the financial problems.

1bestari net - Big Money in Smart School

The local paper carried the news about RM1.5 billion ringgit budgeted for the contract to supply internet access to virtual learning for 9924 school under Smart School Bestari project. Just to align it to the 1malaysia concept, the project was rename as 1bestarinet.

Malaysian are known to change the theme when the leadership change. Under the previous PM, the theme was.."Cemerlang, Gemilang dan Terbilang". And now is 1 Malaysia.

The idea and the implementation of the smart school was part of the 7 flagship of MSC. If you go the MSC, it still mentioned about the smart school as..."Smart School
Following the Education Development Blueprint (2006-2010), to ensure that all schools in Malaysia `Be Smart` by 2010 and assuring Smart School Qualification standards adopted throughout for quality assurance, this application is not only an investment benefit for the general society, but also a benefit for businesses for the up and coming future as it ensures that the future generations of workers or employees are more tech savvy and well versed and in tune with the ever rapidly progressing digital age."

Now it is 2011, and the billion ringgit investments were burned in smoke. The new project will draw billion ringgit for the contractors, but without accountability, it will be another smoke screen.

Incidently the link to smartschool at

http://www.mscmalaysia.my/topic/12073046901815 leads to a blank/

puduraya opened in April

The main bus station in kuala lumpur Malaysia was reopened on the 16 April 2011, after about 4 months of delay. This is a reflection of Malaysian Project Management for government based projects.

It is not unusual to have delays and sometime major defects or even parts of the buiding fallen apart, like the stadium in Terengganu.

The bus station was supposed to reopen in December in 2010, then delayed to February, then March and then April.

The star reported..."Raja Nong Chik said the developer, Uda Holdings Berhad, had informed him that all the preparations were going on smoothly for the terminal to resume operations on schedule"... He seem to be unaware or may be do not care about the prolonged delay.

Puduraya bus station to reopen April 16 Apr 2, 2011 ... PUTRAJAYA: The upgraded Hentian Puduraya bus terminal is to reopen on April 16 after several postponements, said Federal Territories and ... thestar.com.my/news/story.asp?sec=nation&file=/2011/4/2/...

The refurnishing of the building was intended to provide comfort to the travelling public. However in many cases, the facilities are overbuild and above the needs of the bus companies and the public. This had added cost to the public. The central ticket systems, the like of that in Bandar Tasik Putri and added to the cost of travelling. Bus companies used to issue their own tickets, and they even have their computer system linked to the seating configuration of their fleet. To use a centralizes system will be additional cost.

Puduraya bus station is centrally located, unfortunately positioned right in the and has to face the daily jam.

Kimanis Power Station

Petronas is set to finance the RM2.2bil power station project at Lahat Datu, in Sabah Malaysia. The 300MW gas powered station will be operated using natural gas. A liquefied natural gas plants will be set up to supply the gas to the power station.

Petronas Gas to raise funding for Kimanis plant Jul 22, 2011 ... KUALA LUMPUR: Petronas Gas Bhd (PetGas) will raise 80% of the RM1.5bil for the gas-fired power plant inKimanis, Sabah via project financing ... biz.thestar.com.my/news/story.asp?file=/2011/7/22/business/20110722115551&sec=business

---------

The extract from the Star newspaper is given below:

KUALA LUMPUR: Petronas Gas Bhd (PetGas) wants to raise RM1.2bil to finance its 300MW gas-fired Kimanis power plant in Sabah, through project financing while the balance will be through equity financing.

“The total cost of the power plant is RM1.5bil. We are looking at financing 80% of it through project financing,” chairman Datuk Anuar Ahmad told reporters after its annual general meeting yesterday.

Asked if PetGas had secured the funding, he said it was currently finalising details with both local and foreign banks.

It is understood that PetGas was looking at sukuk bonds or a term loan as options for the 80% of the funding and the balance 20% would be funded via equity.

PetGas also targets to sign a power purchase agreement (PPA) “soon” for the Kimanis plant.

According to analysts, the PPA for Kimanis would be finalised soon, while the regasification service agreement might be signed by end-2011 to be able it to commission the plant in July 2012.

The company had entered into a shareholders agreement with NRG Consortium (Sabah) Sdn Bhd to provide operation and maintenance services for the 300MW power plant. NRG is a wholly-owned unit ofInnoprise Corp, which in turn is wholly-owned by Yayasan Sabah. PetGas holds a 60% stake in the joint venture.

The Kimanis power plant will be the largest independent power producer in Sabah. Located at over 21 ha, the first block of the Kimanis power plant is scheduled to be commissioned at end-2013 while the remaining two blocks in 2014 to meet Sabah's increasing electricity demand.

Meanwhile, the company expects its revenue to grow another 10% per annum once its regasification plant in Malacca is completed by July next year.

PetGas managing director/CEO Samsudin Miskon said the regasification plant in Malacca had been progressing well and was on track for completion.

On capital expenditure, he said PetGas had allocated some RM800mil to RM1bil this year for plant rejuvenation, revamp and also the engineering, procurement, construction and commissioning of the Kimanis plant.

Commenting on the listing of Gas Malaysia Sdn Bhd, Anuar said PetGas had approved the listing of Gas Malaysia but no timeframe for the listing had been set. “I think it will be some time this year,” he said.

PetGas has a 20% stake in Gas Malaysia, while MMC Corp Bhd has 41.8%, Tokyo Gas-Mitsui & Co (Holdings) Sdn Bhd 25% and Shapadu Holdings the rest.

power plant for SEB

Sarawak Energy BHD is investing RM2.5bil to build 600mw of coal powered plants at Balinian.

For the last one year we had seen the news about Bakun Dam project built by the federal government during the era of Mahathir. One of the main concern was to get enough consumers for the excessive energy. There was talk about building tin smelting plants which will likely to use a sizeable amount of the power produced. The Bakun dam cost the tax payer around RM8bil and it does not include the distribution line which can cost equally as high.

The new coal plan is expected to be completed by 2015. Currently SEB has 2 plants, in Mukah - 270MW and another in Kuching producing 210MW. It is also constructing another dam at Murun giving 944MW.

The present Chief Minister, Taib Mahmud announced that 26bil investments is set for 2 year period.

Incidently Taib Mahmud had made a public promise in the last election to vacate the office.

read the original news below...

SEB to invest RM2.5bil in a 600MW coal-fired plant Jul 14, 2011 ... KUCHING: Sarawak Energy Bhd (SEB) is close to making “a final ... More power: SEB has to cope with the strong demand for power from ... biz.thestar.com.my/news/story.asp?file=/2011/7/14/business/9096898&sec=business

MRT first line cost RM20bil

Although the actual planned cost of the Kuala Lumpur MRT project will only be revealed in September 2011, it is estimated the cost of the first 3 lines to be in the region of RM20bil.

The first line will be from Sungai Buluh to Kajang, a distant of 51km, including 9.5km underground. The cost on the underground part will be high, nearly rm800 thousand per km.

The project will be managed by Gamuda with a new term PDP, project delivery partner. It is not clear the role of PDP. Some may think it like the company created in the purchase of the malaysian submarine, where rm500mil commission was paid. The person involved was the close associate to Najib, the responsible minister it that time.

read the feed further..

First MRT line likely to cost RM20bil

Jul 9, 2011 ... KUALA LUMPUR: Although the actual cost of the country's first mass rapid transit (MRT) system will be disclosed in September due to a 50% ...

biz.thestar.com.my/news/story.asp?file=/2011/7/9/business/9066355&sec=business

The Saga of Terengganu Stadium

It was reported in the star that the repair to the damaged stadium will be done next year.

The MB of Terengganu, Datuk Seri Ahmad Said said the state government decided to go ahead with the repair because the damage get worsen due to the long neglect.

The repair will start with the football field followed by the roof. Most likely new roof will be ade of lighter material.

The Public work department will be issuing a tender document.

It was not known whether the collapse happen while the stadium is under warranty. There was such a report, and it would be a logical step that the contractor would be liable to do the repair. However logic may not necessarily applicable here.

----------

In Mar 2010, the newspaper reported that the repair of the collapsed roof should be done by the contractor as the stadium was still under the warranty

A few important issues were raised:

1. Serious engineering flaws, shoddy workmanship, inferior materials and lack of expertise in the key project management team were found to be the main contributing factors behind the roof collapse of Terengganu Stadium at Gong Badak.

2. the project management team did not have the necessary skills and competence to manage a project

All-round flaws caused stadium roof collapse

Mar 11, 2010 ... Also, repair works should be undertaken by a specialist contractor. ... a year after the handover and the stadium was still under warranty. ...

thestar.com.my/news/story.asp?file=/2010/3/11/nation/5841338&sec=nation

On 11 Jun 2011, It was reported that the repair has not started.

Stadium repairs to begin by year-end

Jun 11, 2011 ... KUALA TERENGGANU: Repairs to the roof of the Sultan Mizan Zainal Abidin Stadium here which collapsed two years ago are expected to get off ...

thestar.com.my/news/story.asp?file=/2011/6/11/nation/8879938&sec=nation

There was not mention that the repair will be conducted by the contractor. It had been two long years after the collapse. I believe that Terengganu does not have any problem with cash as the state is given the oil royalty.

The royalty was stopped when the state fell to the opposition, a situation many people find it hard to understand. But given the situation of the collapse roof and a few more buildings, then the logic seem clearer.. . If you cannot manage a 300 mil project, how can you manage a billion dollars assignment.

Air Force Base Sendayan

A new multi billion Ringgit project is in the making. Timeline is unknown. The scope of the project is unknown.

It was announced in the paper by Najib that a new airforce base will be built in Sendayan near Seremban to replace the present base in Sungai Besi. The existing base will cease to operate at the end of of 2011.

The base in Sungai Besi will be developed by a newly created company '1 malaysia develpoment berhad', who got the right to the land at almost not cost. I am sure if it were privatised, it will generate an income in billions that can be used to counter at least the rise of the essential petrol.

The transfer process from the current base to the new sendayan base will take at least 5 years, well into the second election session...

More news in the star..

Sendayan is new site for air force base

May 29, 2011 ... GEMAS: A new air force base will be built inSendayan near Seremban to replace the Sungai Besi base which is expected to cease operations by ...

thestar.com.my/news/story.asp?file=/2011/5/29/nation/8781177&sec=nation

little india problem project

The blaming game is only scratching the surface. The actual problem and the rotting flesh may be much deeper. Instead blaming, they should be investigating.

I am sure there is the spec for the project or the standard engineering practices. The like of the the pillars that started to fall apart. It is so basic to ask the question.. how deep it should be planted into the ground.

Finger-pointing starts over Little India project

May 17, 2011 ... THE blame game is now in full swing between the authorities, developer, businesses and residents over the Brickfields Little India project.

thestar.com.my/metro/story.asp?file=/2011/5/17/central/8694068&sec=central

Read more...

Tuesday May 17, 2011

Finger-pointing starts over Little India project
By BAVANI M
bavanim@thestar.com.my




THE blame game is now in full swing between the authorities, developer, businesses and residents over the Brickfields Little India project.

Stakeholders involved in the project are pointing fingers at one another on who should be blamed over the decaying state of the multi-million ringgit iconic landmark.

A Malaysian Resources Corpo-ration Berhad (MRCB) contractor involved in the Little India project conceded that the project was rushed through to meet government deadline, but denied that it was the result of shoddy work.

“I agree that we rushed it but we should not be blamed for the defects on the plant boxes and pillars,’’ said the contractor.

“The wear and tear is the result of vandalism,” he said, adding that the public, including children, have been seen sitting on the plant boxes.

“Jalan Tun Sambanthan is a high traffic area and the five-foot area is also used by restaurants for placing of chairs and tables for diners,’’ he added.

According to the contractor, a team has been set up to carry out regular maintenance work to ensure that the facilities and décor are in good condition.

“The plant boxes were repaired just three weeks ago and the elephant fountain was repainted recently,’’ he said.

He added that the defect liability period was 24 months after the date of vacant possession and contractors were required to fix any defects.

A Palm Court resident, who only wished to be known as Chandra, blamed the Kuala Lumpur City Hall (DBKL) for not carrying out enforcement on the traffic congestion in the area.

“My wife was in labour pain recently and we were stuck in a traffic jam just getting out of my condo in Brickfields. Cars were double-parked and this would not have happen if DBKL is doing its job,’’ he said.

The Brickfields Little India Petty Traders Association said any problems relating to the iconic landmark could easily be resolved if the restaurants were not allowed to place their tables and chairs on the five-foot way.

The association said the main objective of creating Little India was to create business opportunities for the poor Indian traders.

“The blueprint of the area allows the walkway to be used for the poor traders to operate their kiosks.

“Petty traders will sell souvenir items which are different from what the main shops are offering.

“It should not be dominated by one business group as Little India is a people’s project.”

Certain parties have called for the privatisation of the Little India project to better manage and monitor the place.

Brickfields Rukun Tetangga chairman S.K.K Naidu said privatisation was a good idea, but the taskforce must be properly represented.

Little India Action Committee chairman S. Pathavachalam, however, feels privatising Little India would not solve the problems.

“Little India is not a business concern to be privatised. The authorities must ensure there is a proper two-way communication between the residents, businesses and non-governmental organisations.

“Start communicating with one another and you will solve all the problems,’’ he added.

Deputy Federal Territories and Urban Wellbeing Minister Datuk M. Saravanan said he would call for a meeting with all parties concerned to resolve the problem.

StarMetro reported on Monday that the RM35mil landmark in Brickfields is beginning to show signs of decay barely eight months after Najib and his Indian counterpart Manmohan Singh launched the project in October last year.

Related Story:
Little India plagued by problems beneath the facad

Selangor to register illegal shelters and homes

PETALING JAYA: The Selangor Government will start registering illegal shelters and welfare homes in the state.

Exco member in charge of welfare Rodziah Ismail said she had also directed local councils and district offices to identify those that had not been registered.

“We will then check if these homes have followed government guidelines, including having licences and certificates of fitness (CFs) for their premises,” she said, adding that the operation would take three months.

Rodziah said the move was taken following the landslide that struck Rumah Anak Yatim Hidayah on Saturday, which killed 16 people, mostly children.

Meanwhile, PKR president Datuk Seri Dr Wan Azizah Wan Ismail urged the state government to investigate the cause of the landslide.

She said investigations also had to be carried out for all buildings and houses on hillside slopes, including private property.

“The country has had enough of such untoward incidents,” she said in a statement.

Dr Wan Azizah said the tragedy served as a reminder to people to always put safety first.

Related Stories:
Hulu Langat tragedy: It was a disaster in the making
Woman reunited with landslide survivor after 11-year search
Top priority is to help victims deal with trauma
Cops not ruling out negligence behind Hulu Langat tragedy

From Opinion:
Lessons unlearned from landslides past

View the original article here

Malaysian Competitive Position

Malaysia has been hit by the problem of losing its competitive position in the world market. While the government is trying to convince the Malaysian on how good things are going, but the majority may feel otherwise.

While the ETP ( economic transformation program) is still hot in its implementation, it does not really respond to the issue of competitiveness. They consist of projects that was intended to increase the GDP.

While Jala, the minister for transformation tried to play down the report by saying that it was the opinion of 110 people from 28 million, the truth may be far from it. I doubt the report of world standing was made solely based on opinion on 110 people.

Read more from the paper..

Jala surprised by fall in world competitive ranking

May 22, 2011 ... Jala surprised by fall in world competitive ranking. By YUEN MEIKENG meikeng@ thestar.com.my. KUALA LUMPUR: Minister in the Prime Minister's ...

thestar.com.my/news/story.asp?file=/2011/5/22/nation/8733876&sec=nation

Sunday May 22, 2011

Jala surprised by fall in world competitive ranking

By YUEN MEIKENG
meikeng@thestar.com.my

KUALA LUMPUR: Minister in the Prime Minister's Department Datuk Seri Idris Jala has expressed surprise that Malaysia has fallen six places in international competitiveness ranking from last year.

However, Jala, who is also the Performance Management and Delivery Unit (Pemandu) CEO, said he accepted the ranking and would look into areas which could be improved.

“We are studying the report on Malaysia's position in the World Competitiveness Yearbook 2011.

“We will look into issues and areas of weaknesses and find ways to improve them,” he said after the “How you can participate and benefit from the Economic Transformation Pro-gramme (ETP)” seminar held at Wis-ma Chinese Chambers here yesterday.

Jala added that the Government would analyse the details of the report next week.

In the scoreboard released by Switzerland-based Institute of Management Development, Malay-sia's ranking dropped from 10th place to 16th out of 59 participating countries.

Jala said the ranking was produced from interviews with 110 people although there were about 28 million Malaysians.

“The ranking is the result of the views of those 110 people. If you ask another 110 people, they may have different views,” he said, adding that it had only been six months since the ETP was introduced.

“It will take time for the ETP to show fruition in the economy.

“I remain positive that this is a great country with a great future,” he said, adding that there was still a need to improve government and business efficiency.

On the Chinese community's acceptance of the ETP, Jala said their response was excellent and he was very encouraged by it.

“Many Chinese small and medium enterprises have raised their issues with us and we are looking for solutions,” he said.

9 MP projects 408 not completed

It was revealed by SK Devamany that 408 projects from the 9th Malaysian Plan have yet to be completed as at the end of Dec 2010.

Some of the quoted reasons were:

1. Financial problems of the contractors

2. Lack of expertise

3. Contractors handling too many projects

What was not investigated and explained if the problems were also caused by the selection processes.

Read more from the star...

408 projects under 9MP yet to be completed

Apr 28, 2011 ... A TOTAL of 408 projects allocated in the Ninth Malaysia Plan (9MP) have yet to be completed as at December last year, Deputy Minister in the ...

thestar.com.my/news/story.asp?file=/2011/4/28/parliament/8564514&sec=parliament

... Quoted..
Thursday April 28, 2011

408 projects under 9MP yet to be completed



A TOTAL of 408 projects allocated in the Ninth Malaysia Plan (9MP) have yet to be completed as at December last year, Deputy Minister in the Prime Minister’s Department Datuk S.K. Devamany said.

They were part of the 25,974 projects awarded under the 9MP from 2006 to 2010, he told Senator Datuk Daljit Singh Dalliwal.

Devamany said that among the reasons cited for the delays were financial problems faced by contractors and their lack of expertise.

“There are contractors who handled too many projects at one time,” he added. However, the projects would not be abandoned as new tenders would be re-opened.

“Contractors who fail to complete their projects risk being blacklisted and will not be given a chance under the 10th Malaysia Plan,” Devamany said.

Deputy Home Minister Datuk Lee Chee Leong said a total of 10,958 police officers undertook training in customer services, administrative and communication skills last year.

He said the training was given to enhance counter services when they faced the public.

Bakun Dam New Saga

As if the earlier problems are not enough, new problem crops up.

Guys... Help these people and please enlighten them..

"Is the project, a business venture or a state development?".

.. What was the intent?.. Only they know..

Bakun Dam saga enters next chapter

Apr 20, 2011 ... Bakun Dam saga enters next chapter. Behind The News - Yap Leng Kuen. Should project be viewed as a business deal or part of state ...

biz.thestar.com.my/news/story.asp?file=/2011/4/20/business/8516081&sec=business

Read more from the star..

Wednesday April 20, 2011

Bakun Dam saga enters next chapter

Behind The News - Yap Leng Kuen

Should project be viewed as a business deal or part of state development?

THE protracted story of the Bakun Hydroelectric Dam project, instead of ending soon, may be just going into its next chapter.

The latest saga in the tariff pricing disagreement between Sarawak Hidro Sdn Bhd, owner and developer of the dam, and Sarawak Energy Bhd (SEB), the offtaker and state utility board, is entering its fourth scenario.

The first round of talks just after the completion of the dam looked at its possible sale or lease; subsequently, Sarawak expressed its intention to buy over the dam.

News surfaced recently that the sale of Bakun was off and that it would be operated on a joint-venture basis.

The latest is that SEB has proposed to buy a 30% stake in the project.

The power negotiations too have undergone three changes from earlier suggestions of flat to escalating tariffs. Currently, the offer is for a starting tariff of six sen per KwH.

In February this year, SEB had indicated it was willing to pay six sen per kwh but Sarawak Hidro said it needed a flat rate of 9.5 sen per kwh on a 30-year concession.

On an escalating basis, SEB had offered 5.4 sen per kwh at 1.5% per annum (inclusive of a one sen water tariff to the state); Sarawak Hidro had countered with 6.75 sen per kwh, also at 1.5% per annum.

The power purchase agreement (PPA) negotiations went on a rocky path last month with different instructions from the state and federal governments. Early last month, the PPA talks were ordered off by the state and later in the same month, the federal government expressed the desire for the PPA to be concluded as soon as possible.

The question here is whether the Bakun Dam project should be viewed as a purely business deal or part of the socio-economic development of Sarawak?

As a business deal, the Government should make every effort to recover its investments.

If it wants to play its developmental role, it may consider taking a hit and absorbing some losses while helping Sarawak to achieve its industrial goals.

Under the study conducted by PwC, it is believed that the Bakun project is valued at between RM8bil and RM10bil; however, Sarawak's latest tariff offer of six sen per kwh values it at only RM6bil.

In contrast, coal-fired tariffs cost 28 sen per kwh.

Some ask if giving a hefty discount is justified, as more expensive dams are coming up. They say it is not fair that power from Bakun has to be sold cheaply to subsidise the construction of these additional dams.

Others want to know why the cost of transmission via the new grid system is much higher, at over four sen per kwh compared with the cost of only one sen in the peninsula.

Sarawak has said it needs 6.000MW-7,000MW of power by 2020. Bakun has a capacity for 2,400MW and Murum is able to produce 944MW.

Others still pose questions on why polluting industries should take advantage of the cheap, clean power from Bakun.

These heavy industries located in the Sarawak Corridor of Renewable Energy (SCORE) have rebutted that they use advanced technology that do not pose a threat to the environment.

Scare tactics have been used which speculated on the possibility that the Bakun Dam project could end up being a white elephant if industries were not attracted to soak up the power at competitive rates.

Looking at the power requirements of Peninsular Malaysia beyond 2015, this power from Bakun may be transmitted back to the peninsula. Is it worth it to revive the idea of building the undersea transmission line especially in the wake of the nuclear scare and the limit on Malaysia's carbon footprint under the now expired Kyoto Protocol?

Already the pressure is on to conclude the tariff negotiations. Sarawak has signed non-binding agreements with four companies to supply power. Their plants are at the preliminary stages of planning and construction.

Who Want Bakun Dam?

The dam is completed. However the problem does end there. The mega project of about 8bil under the Mahathir era is seem to facing problems after problem.

It seem odd that, who ever decide to build it, is looking for the buyer of the power. A thinking person will not accept the excuses put forward by the political master, unless off course there are other reasons unknown to the public and only in the privy of the selected few.

The star biz carried the news..

SEB to buy 30% of Bakun Dam for RM1.3bil?

Apr 20, 2011 ... PETALING JAYA: Sarawak Energy Bhd (SEB), the state utility company, is believed to have proposed to acquire a 30% stake in the Bakun ...

biz.thestar.com.my/news/story.asp?file=/2011/4/20/business/8514165&sec=business

Wednesday April 20, 2011

SEB to buy 30% of Bakun Dam for RM1.3bil?

By YAP LENG KUEN
lengkuen@thestar.com.my

PETALING JAYA: Sarawak Energy Bhd (SEB), the state utility company, is believed to have proposed to acquire a 30% stake in the Bakun Hydroelectric Power project for RM1.3bil cash, sources said. The payment would likely be in the form of equity of RM700mil and a shareholders' loan of RM650mil, the sources added.

Based on its latest offer of a starting tariff of six sen per kwh, SEB is said to be working on a valuation of RM6bil for the Bakun Dam project compared with the cost of construction of RM7.46bil.

It is learnt that Sarawak Hidro Sdn Bhd, the owner and developer of Bakun Dam, finds the offer too low and is looking closer to seven sen per kwh, which will value the project at about RM8bil.

Sarawak Hidro's valuation is in line with the findings of a recent study by PwC, believed to be commissioned by the Finance Ministry (MOF), which valued Bakun at between RM8bil and RM10bil, sources said.

The Bakun Dam early this year

“Therefore, at SEB's valuation of RM6bil, it is believed that the valuation of Bakun will go down below its debt of RM5.75bil,'' the sources added.

“The MOF, which owns Sarawak Hidro, is handling these negotiations,'' said a source. “They will probably be working closely with SEB to find a mutually acceptable solution.''

The offer of six sen per kwh took into account a one sen water tariff the dam owner is obliged to pay to the state, sources said, adding that while asking for concessions from the Federal Government, the state should consider giving some leeway in terms of land charges and water levies.

Sarawak Hidro's price tag of RM7.46bil includes a RM950mil compensation to Ekran Bhd, the previous developer that could not complete the job, and RM500mil in resettlement costs.

Late last year, SEB had offered RM6bil to buy over the entire dam project. The MOF is believed to have cautioned that a sale of the mammoth project at below cost would be subject to scrutiny from the Public Accounts Committee.

Subsequently, SEB increased its offer to RM7bil with the following conditions:

The debt of RM5.75bil must be guaranteed by the Federal Government;

The equity portion of RM1.25bil would be paid over two years; however, there were no other details on this;

SEB wanted immediate control of the dam; and

The Federal Government must indemnify any potential cost over-runs.

Earlier talks had centred around possibilities of paying tariffs at flat and escalating rates; however, the parties could not come to any agreement.

This tussle involving ownership and power tariffs at the Bakun Dam has received the attention of top government officials.

It is believed to be in the agenda chaired by the Prime Minister at the oil, gas and energy committee under the Performance Management and Delivery Unit (Pemandu).

Sources said the talks were likely to last a few more months. “Both parties need each other badly,'' said a source, adding that they just needed to hammer out an acceptable solution for all.

The 2,400MW Bakun Dam is ready to supply 300MW in about three months' time, while SEB has signed term sheets with four companiesPress Metal Bhd, OM Materials, Asia Minerals Ltd and Tokuyama Corpfor supply of 1,300MW for their upcoming plants.

Related Stories:
Bakun Dam saga enters next chapter
Bakun hydro project to be joint venture