THE buying back of Bakun Dam was a good move and logical acquisition by the state government.
According to Chief Minister, Datuk Amar Abang Johari Tun Openg, the price for the Bakun Dam is RM2.5 billion in cash and RM5.6 billion in net debt outstanding as of the end of December, 2016.
He explained that the federal Ministry of Finance continued to provide Government Guarantee and Letter of Undertaking to the loans and that the RM2.5 billion cash was for the entire equity of Sarawak Hidro Sdn Bhd as well as the Special Rights Redeemable Share.
“The RM2.5 billion in cash will be paid for by SEB’s internally-generated funds and loan facilities.
“The net debt of RM5.6 billion will be repaid purely by the cash flows generated by the Bakun Dam facilities itself over the remaining duration of the loan of 15 years as against the asset life span of the dam which will last even more than the 60 years generation licence period given by the government,” he said.
Johari added that business-wise, it was a good move as Bakun Dam was commercially-viable and once the debts had been paid, it would become another source of income for the state government.
