KUALA LUMPUR (March 8): The Sarawak state government said it has reached an agreement to acquire the entire equity interest of Sarawak Hidro Sdn Bhd (SHSB) — which owns and operates the Bakun Hydroelectric Plant (HEP) — from Ministry of Finance Inc and Federal Lands Commissioner for RM2.5 billion.

The acquisition will be made by Sarawak Energy Bhd, a wholly-owned integrated electricity utility and energy development company, enabling the Sarawak government to have full ownership of all electricity generation facilities in Sarawak.

"Agreement has been reached in principle that the ownership and operation of the Bakun HEP, the country's largest hydropower electric plant, shall be fully returned to Sarawak through the acquisition of shares in SHSB," said Sarawak Chief Minister Datuk Amar Abang Tun Abang Haji Openg in a statement today.

SHSB was established to develop and manage the Bakun HEP, which was fully commissioned in July 2014 with capacity of 2,400MW.

"This is a major concession by Putrajaya and I would like to thank the prime minister for this. The acquisition of Bakun HEP represents part of our overall strategic plan to develop and consolidate state abundant energy resources which makes the state in full control of energy for the benefit of our people and our economy in the long run.

"Going forward, this will certainly help Sarawak Energy improve Sarawak's capacity to maintain power security and reliability, and enable operational efficiency through better integration of the Bakun and Murum HEPs," said Abang Amar.

The details of the agreement are being finalised between the parties.