KUALA LUMPUR: The Sarawak government is acquiring the entire equity interest in Sarawak Hidro Sdn Bhd (SHSB) — which owns and operates the Bakun Hydroelectric Plant (HEP) — from the 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 state government to have full ownership of all electricity generation facilities in Sarawak. Sarawak Energy also operates the Batang Ai and Murum HEPs.

“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 Chief Minister Datuk Amar Abang Johari Abang Openg in a statement yesterday.

SHSB was established to develop and manage Bakun HEP, which was fully commissioned in July 2014 with a capacity of 2,400mw. It was built at a cost of RM7.4 billion, inclusive of financing.

“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 the state’s 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 Johari.

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

At a press conference in Kuching yesterday, Abang Johari said the Sarawak government had offered to acquire the asset at cost, at RM2.5 billion.

“The acquisition will be completed after we finalise the details, within these two months,” he said, according to the transcript of the press conference made available to The Edge Financial Daily by the chief minister’s office.

It’s a major concession of the federal government and it was given with no conditions attached. This shows that the prime minister is looking after the interests of Sarawak,” he said.

With the acquisition, Abang Johari said he intends to make electricity cheaper for Sarawakians in the long run and also sell power to neighbouring countries.

The acquisition is also in line with efforts to develop Sarawak’s digital economy, he said, as data centres would require power.

Meanwhile, the chief minister said he will be making a significant announcement in the near future.

“I will be announcing more. Within my 100 days, there will be some major strategic decisions to be made by me as chief minister,” he said, without giving details.