Thursday, April 28, 2011

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...
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.

Wednesday, April 20, 2011

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..

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..

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

Tuesday, April 5, 2011

Mollywood Malaysia

If the US film industry has Hollywood, the Indian has Bollywood, then the Malaysian would have Mollywood...

At least, that is what the paper was saying, though it may be a challenging task.

The news about the setting was covered by Cnet Asia. on Jul 1999.

It would be interesting to check the status of this multi-million dollar project now, as on April 2011.

please google search.. "malaysian e-village"
You will up to a surprise...

..as there is nothing except a forum post..
------------------------------------------------

Malaysia builds US$60m Hollywood-style studio for MSC
Posted on July 15, 1999
Filed Under CNET, Julian


KUALA LUMPUR–Watch out Hollywood, here comes Mollywood.
Malaysia is hoping to replicate the Hollywood-Silicon Valley combination in California by building its own film studio cum movie theme park within the Multimedia Super Corridor (MSC) high-tech zone.

The Entertainment Village or E-Village will be situated on a 200-hectare site near Cyberjaya, the host city for information technology companies in the MSC.
Malaysian multinational Datuk Keramat Holdings (DKH), the part owners of Leavesden Studio in Britain, will initially spend US$60 million on the project.
MSC promoter Multimedia Development Corporation (MDC) disclosed details of the E-Village at the annual panel meeting for international advisors to the project last week.
Its executive chairman Dr Othman Yeop Abdullah said the studio will be the first phase of the E-Village followed by the building of a theme park, styled after a similar park in Orlando but with local cultural components, and a third phase which will be a holiday resort, and a township for businesses and residents.

The E-Village is part of MDC’s plan to cluster broadcasters, film producers, post-production companies, animation companies, and specialists in multimedia training and education in the MSC.

Dr Othman said DKH has the necessary expertise because of its involvement with the Leavesden Studio which counts among its recent coups George Lucas’ “Star Wars Episode 1: The Phantom Menace”, James Bond movie “Golden Eye”, and “Mortal Kombat 2: The Annihilation.”
The MDC has actively promoted Malaysia as a film location in recent months. It was largely responsible for securing two major 20th Century Fox productions namely, the historical drama “Anna and the King”, starring Jodie Foster and Chow Yuen Fatt, which relocated here after it was rejected by Thailand, and heist thriller “Entrapment”, a Sean Connery-Catherine Zeta Jones vehicle which filmed several key scenes here.

The MDC helped with visa processing and customs clearance and facilitated security and the provision of extras.

Next week, the MDC will head a promotion campaign to India to lure the best of so-called Bollywood to the MSC. The four-day mission will be led by Minister of Energy, Communications and Multimedia Leo Moggie, beginning July 19 and has scheduled visits to Mumbai and Hyderabad.

“We would like to draw from India’s experience in the setting up of its much talked about Hyderabad E-Village as we plan ahead to establish our own at the fringe of Cyberjaya,” Dr Othman said in a statement.

Despite its Hollywood-wannabe ambitions, Malaysia, however, seems unable to shake its conservative attitudes to film-making.

Prime Minister Dr Mahathir Mohamad recently lashed out at “Entrapment,” for “distorting the truth” by splicing the world’s tallest buildings, the 88-storey Petronas Twin Towers in Kuala Lumpur as if it were rising from the slums of Malacca, 150 km away.


Dr Mahathir, who is an ardent promoter for the MSC and has called the 452m-high Twin Towers, the “northern gateway to the MSC”, was upset at Hollywood’s poetic license.
“The distorted view of the skyscrapers will certainly make movie audiences in rich countries conclude that Malaysia is one of those developing countries which waste public funds, perhaps even foreign aid, on useless grandiose monuments,” he reportedly said.

“I really cannot understand why we need to distort and harm when we can be charitable without any additional cost to ourselves,” he concluded.

Malaysia has also banned previous movies like animated musical “Prince of Egypt”, Holocaust epic “Schindler’s List” and most recently “Austin Powers: The Spy Who Shagged Me” for varied reasons.

Detractors say it is ironical that the country that wants to woo Hollywood and encourage such creative endeavors, at the same time adopts such a non-liberal stance to film-making.
Malaysian audiences denied the movies on screen, however, were still able to obtain the banned movies, albeit illegally, in pirated VCD formats sold at popular night markets.

Published in CNET Asia, July 15, 1999.