Friends of the Earth Birmingham Action Briefing Oct-Nov 97

BAKUN: Back on the Shelf

The £2.8 billion Bakun Hydroelectric Project (HEP) represents one of the largest proposed infrastructure projects in the world. The site of the dam is the Balui River in Sarawak, Malaysia. It involves two main elements: the construction of a 205-metre-high rockfill dam which will flood a 69,640 hectare area of primary rainforest; and a 1,350-kilometre-long transmission line to carry the majority of the 2,400MWs of generated electricity from Sarawak to Peninsular Malaysia. In addition, the necessary infrastructure for the dam will include roads, an airport and a new township to re-house the 10,000 indigenous people displaced by the project.

The Bakun HEP was originally proposed in 1982 but shelved in 1990 because of opposition to its immense social, environmental and economic costs. Dr. Mahathir, the Prime Minister, heralded the decision as, "proof that Malaysia cares about the environment"!!! Unfortunately, plans for the project never made it to the bin. Three years later after a period of significant economic growth and a series of power shortages which threatened to undermine public and investor confidence, the government announced plans to retrieve the project from the shelf. The Rio Earth Summit was over and the government proved that its favourite colour was US dollar, rather than rainforest green. This time round the Prime Minister was only interested in impressing one group of people, the private and foreign investors whom he hoped would finance the project.

In September the Bakun HEP once again became no more than a pipe dream. Dr. Mahathir announced that the Bakun HEP, along with a number of other government sponsored schemes would be suspended, indefinitely! I would love to report that this U-turn was the result of pressure placed on the Malaysian government by a world-wide network of organisations; that Dr. Mahathir had at last listened to reason. Well, we all live in the real world and the real reason is economics. To say that a financial typhoon has struck Malaysia in recent months would be an understatement. They simply cannot afford to build it. How ironic it is that in 1997 the Bakun HEP has been put back on the shelf by Malaysia's own over-ambitious economic policy.

The decision has had ramifications for all the companies involved in the construction of the HEP. However, Birmingham based Bucknalls (who are responsible for the construction of new homes for those who will be displaced by the dam) seem to have failed to grasp what it all means. Staggeringly, David Bucknall announced that they will complete their part in the Bakun HEP, a now shelved project. From the outset, Friends of the Earth was aware that the consultation process left much to be desired however we had no idea things were this bad!!! Either they know something we don't, or they simply don't realise they aren't getting paid.

In conclusion, Dr. Mahathir seems to have started something. The Guardian reported on the 24th of September that the World Bank, "may pull the plug" on Laos dam (Thailand) following a loss of financial confidence. Let us hope that the World Bank finally recognises that the rightful place for all future dam construction projects is the bin, not the shelf. The economic, social and environmental costs are just too high, now and forever.

Louise Molloy