File photo of Bakun HEP.

KUCHING: The State Government today signed a historical deal with the Ministry of Finance (MoF) to acquire Bakun hydroelectric power (HEP) from the Federal Government.

According to Sarawak Energy Berhad (SEB) chief executive officer Sharbini Suhaili, the deal was signed in Kuala Lumpur today between SEB and Second Finance Minister Datuk Seri Johari Abdul Ghani who represented MoF.

“Yes, we have signed the final deal with MoF and Bakun HEP is now is ours,” Sharbini told The Borneo Post.

Sarawak Hidro’s Chief Executive Officer cum Managing Director Zulkifle Osman had earlier today revealed that both parties were finalising the technical details of the sale and purchase agreement.

He had also told The Borneo Post end of July that the mammoth Bakun HEP Dam project was on final phase of Sale and Purchase Agreement (S&P) between MoF and the Sarawak Government after the Sukuk owners of Bakun (HEP) Dam agreed during its Extraordinary General Meeting (EGM) held in Putrajaya for the change of ownership from MoF to the State Government.

The strategic move by the State Government to acquire the 2,400 MW HEP Dam ‘lock, stock and barrel’ at a cost of RM2.5 billion from the Federal Government was announced by Chief Minister Datuk Amar Abang Johari Tun Openg on March 8, this year.

Abang Johari had said, the acquisition of Bakun HEP, it will spur Sarawak to become a powerhouse that will enable it to lower the tariffs for local consumers as well as exporting the power surplus to neighbouring countries.

He said the strategic agreement was achieved between him and the Prime Minister Datuk Seri Najib Tun Razak last February and that the balance of the RM6 billion will be serviced by SEB.

The Chief Minister had said that the remaining RM6 billion loan will be managed by SEB, as part of its cash flow but assured that the income from Bakun would be substantial enough even to earn profit from the sale of its power to its consumers.