Case study on the Bakun Dam, Malaysia

©DevelopingEnvironmentalLawChampions,Train-the-Trainers(TTT)Program2016.AllrightsreservedbyADBandIUCNAEL.

STRENGTHENINGCAPACITYFORENVIRONMENTALLAWINTHEASIA-PACIFIC:DEVELOPINGENVIRONMENTALCHAMPIONSPutrajaya,9th – 13th May,2016

CasestudyontheBakunDam,Malaysia

PresentedbyHanimKamaruddin,

1LHLye,APCEL,NUS


TheBakun Dam,Sarawak,EastMalaysiaPurposeofthiscasestudy- toexamine:

- applicationofEIAlaws- conflictsbetweenfederalandstatejurisdiction- publicparticipationandrightsofindigenouspeoples- thedevelopmentvsconservationdilemma- goodgovernance

Materialstobestudied:- backgroundinformation– seehttp://www.internationalrivers.org/campaigns/bakun-dam- KajingTubekvEkranBhdcase(HighCourt&CourtofAppealdecisions)-

2LHLye,APCEL,NUS


TheBakun Dam

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Bakun Dam,Sarawak• TheconstructionoftheRM15billiondamisthemostexpensiveprivatized

projectinMalaysiatodate.• 207metreshighand300metreswide,floodinganareaof700sqkm,the

sizeofSingapore– BakunisthelargesthydroelectricdamprojectinSoutheastAsia&thesecondtallestdamintheworld.

• 10,000indigenouspeoplesfromvariousethnicgroupswillbeuprootedfromtheirancestrallands.

• Projectwasproposedin1970s,shelvedin1990s• 1994:awardofprojecttoSarawaktimbertycoon’scompany,Ekran

Berhad;althoughneitherhenorhiscompanyhadbuiltadambefore• Singledam,generating2400MW,cost$7billionCanadian,RM13.6Billion• IntendedtosupplypowertomainlandMalaysiaviaunderseacables

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Controversies• EIAswerebrokeninto4parts(reservoir,dam,transmissionlines,

underseacable),sothateachcomponentcouldbeseparatelyapproved.• First3partswerenotreleasedtothepublic(FebtoApril1995)• FinallyreleasedinMay1995- CritiqueofBakunEIAbyIRN:

- failedtoexplainwhythedamwasneeded- failedtoadequatelyconsiderthe‘nodam’alternatives,othersourcesofenergy- didnotevaluatelongtermimpacts,orinteractionsbetweendifferentimpactsegeffectofwaterqualityonfisheries- didnotadequatelyestimatelifespanofproject- technicalworriesre:cablesthatdeliverpowertomainland:howlongthesewilllast,howmuchtheycost,howmuchpowerwillbelosttravellingthroughthecableetc.

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KajingTubek v.EkranBhd&Ors [1996]HighCourt

• June1995Actionby3nativessuingEkranBerhad,DirectorGeneralofEnvironmentalQualityandGovtofMalaysia,claimingbreachofthe1974EnvironmentalQualityAct(EQA)inthattheEIAswerenotmadeavailabletothepublicandtheywerethusdeprivedofopportunitytocommentontheproposal.

• Federallaws- EQAs.34AandEnvironmentalQuality(PrescribedActivities)(EIA)Order1987requiredEIAforlargedamprojects.

• SarawakNaturalResourcesOrdinance1949requiredEIAtobesubmittedtoSarawakNaturalResourceBoardforreview.

• 1994SarawakstategovtpassedNaturalResources&EnvironmentOrder(PrescribedActivities)Orderlistingdamprojectsasprescribedactivities

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Kajing Tubek v.Ekran Bhd &Ors [1996]HighCourt(contd)

• 27March1995,Ministerde-prescribedlistofactivitiesrequiringEIAsfromEQAinrelationtotheStateofSarawak,gazettedon20April1995.

• 5July1995– SarawakOrderenacted- theprescribedactivitiesunderEQAshallnotapplytoSarawak;toberetrospectiveasfrom1st Sept.94.

• Deftsarguedinteralia:the3plaintiffshadnolocusstandiastheyhadnotsufferedanyspecificordirectdamagewhichwasdifferentfromothermembersofthepublic.

• HeldbyHighCourt(JamesFoongJ)(1)UndertheGuidelines,allowingforpublicparticipationre:theEIAwasmandatory,commentingbythepublicwasthusaright;(2)plaintiffshadlocusstandiasdestructionoftheforestswoulduprootandimmenselyaffecttheirlives;AmendmentOrderforSarawakwasinvalid.

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Relocationofindigenoustribes

• ManySarawaknativeshavebeenrelocatedtoalonghousesettlementnamedSungaiAsapinBakun.Mostofthemweresubsistencefarmers.Eachfamilywaspromised3acresoflandbutmanyfamiliesstillhavenotbeencompensated.

• Basiccommunityproblemsfacedbydisplacedindigenouspeoplesuchasthelackoflandareasforfarmingandhunting,lackofeducational,medical,andtransportfacilities

• Watersarecontaminatedbyindustrialactivitiesnearby• Watersalsodamagedbyrottingtimber&vegetationthatfell

intothewaterswithdestructionoftheprimaryforests,foulsmellpervades

8LHLye,APCEL,NUS


DecisionofCourtofAppeal• DeputyPMAnwarIbrahimstatedthatthepreliminaryworkonBakuncan

goonasplanned,despitetheHighCourt’sdecision,asthecourtrulingwasontechnicalprocedures;ithadnotdirectedthatworkbestopped.DecisionwhethertostopworkorproceedlieswithEkran.

• Onappeal:18Feb1997- CourtofAppealheld:StateofSarawakhadexclusivejurisdictionoveritslands,Sarawakhaditsownenvironmentallaws;FederalConstitutionplaceslandasasubjectundertheStateslist.SincetheprojectrelatedtolandandriverwithinSarawak,itwastheSarawaklawandnotFederalEQAthatapplied.

• Plaintiffsonlyhadthresholdlocusstandi,butnotsubstantivelocusstandi,notrepresentativeincharacter(thiswasnotaclassaction),theyhadsufferednospecialinjury.

• HighCthadfailedtoconsiderthepublicandnationalinterestsinvolved.• Coststobebornebybothparties,asnativeswere“confused”bythelaws.

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SuspensionandRevivalofProject• 1997projectsuspended– economiccrisis• March2001– MalaysianFinanceMinisterannouncesthattheDamwill

proceed,onthesamescale,withacapacityof2,400megawattsbutwithoutcableslinkingittothemainlandpeninsula.

• ThiswillresultinascalingdownofcostsfromRM13.5billiontoRM9billion.

• ThedamwouldsupplyelectricitytoSarawak,Sabah,BruneiandpossiblyKalimantaninIndonesia.

• Fundingwouldbetappedfrominternationalsources.• Meanwhile– critiquebySwissactivistBrunoManser(forthePenans,an

indigenoustribe),seerepliesfromMalaysianPMDrMahathir“ThePenandTheSaw”.ManserdisappearedinFeb2000andwaslaterdeclareddead.

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Evaluation• TheDamisnowcompleted• Therearereportsitisunsafe,asChinesecontractorsadmittedcuttingcorners,

mixedcementwithwater,poorqualitycontrol,lackofinspections• Q– whowillbuytheelectricity?Aluminium&otherhighlypollutivecompanies• “ThetotaldemandforelectricityinSarawakisonly500megawattsannually,and

thestatealreadygenerates700megawattsannually,sothereisexcessdemand”perDrKuaKiaSoong,spokesmanforConcernedGroupsforBakun.(1995)

• Damnowhas8turbines,eachgenerating300megawattsofpowerbutreporton1Jan2014saysonly6unitsinoperation,eachgeneratinghalfload(150mgw)=900megawatts.

• Sarawakhasannounceditwillbebuilding12newdams!• http://www.sarawakreport.org/2014/01/bakun-turbines-running-at-just-50-

capacity-exclusive/• TransparencyInternationalincludesBakunDaminits'Monumentsofcorruption'

GlobalCorruptionReport2005.

11LHLye,APCEL,NUS


RevivalofsubmarinecablestosupplyenergytoWestMalaysia

• Theproposedconceptisfor2x800MWcablesbeinglaidabout660 kmundertheSouthChinaSea fromtheSarawakshoretoYongPengonPeninsularMalaysia

• Thecableisplannedtotransport1600MWofpowerfromtheBakunDamtoYongPeng,Johor[40] viaunderseaHVDCpowercablesandthenvialandlineontotheMalaysianNationalGrid.

• TheuseofHVDCcableswouldensuretheenergylossisminimal,atabout5%to6%only.

• ThecostoftheunderseacableisestimatedatRM9billion.

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Questions• Whatlessonscanbelearntfromthiscasestudy?• Shoulddamprojectsbeundertaken?Ifso,howbestshould

theyberegulated?Whatsafeguardsshouldtherebe?• Havetherightsofindigenouspeoplesbeenviolatedinthis

case?Whatrightsdotheyhave?• Howcanthelawspromotebettergovernance?Whatlaws

wouldyoucraft?• Giveargumentsfor/againsttheDam– representing(a)the

government(b)thetribes(c)conservationgroups

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References• ChanWingCheong“EnvironmentalProtectioninMalaysia–

LessonsfromtheBakunHydroelectricprojectlitigation[1998]• http://www.internationalrivers.org/campaigns/bakun-dam• http://www.cleanbiz.asia/news/sarawaks-bakun-raises-

development-corruption-questions• Sevensinsofdambuilding

http://www.wwf.eu/?207987/7-sins-of-dams• ToDamorNottoDam?

http://d2ouvy59p0dg6k.cloudfront.net/downloads/2045.pdf• OfficialPortalministryofNaturalResourcesandEnvironment

www.nre.gov.my• DepartmentofEnvironmentMalaysia www.doe.gov.my

14LHLye,APCEL,NUS

Case study on the Bakun Dam, Malaysia

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