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Murum another dam which does not make economic sense

The Auditor-General’s Report concerning the Murum dam’s excessiveness is yet another proof of a well-established fact that mega dams are bad investments. Therefore Sarawak should stop constructing mega dams but launch into alternative energy sources.
 
In the report by the Malaysian auditor-general, which was quoted in The Star newspaper on May 19, the recently-completed Murum dam project in Sarawak has incurred a RM530 million in extra costs. This has resulted in the dam’s cost to increase to RM2.9 billion. However, such a cost increase is common for mega dams as experienced in various projects worldwide.  

Based on a study done by a team from Oxford University which was published in 2014, it is reported that “Large dams suffer average cost overruns of 9 percent. The degree of cost overruns tended to increase with the size of the projects.” The study is based on dams built between 1934 to 2007, where reliable cost figures and database were available.

The study further commented that, “There is little learning from past mistakes,” and it added, “By the same token forecast of costs of dams being made today are likely to be as wrong as they were between 193 and 2007.”

Commenting on the irrationality of mega dam projects, Peter Bosshard from International Rivers said, “Simply put, dams don’t just destroy the environment and impoverish local communities. They also don’t make economic sense.”

The Sarawak state government proposed between 12 to 52 mega dams to be built in Sarawak under the Sarawak Corridor of Renewable Energy (Score) plan. The Murum dam is the first of the 12 dams which are already in the immediate plans.

Commenting on the Auditor-General’s Report, Peter Kallang, the chairperson of Save Rivers said, “Since the government is planning for at least 11 more dams after Murum, Sarawak can expect more instances of ballooning cost from those projects as well. Sarawak’s hydroelectric dams projects is not based on existing consumers demands or its organic growth but the dams are built as the government and SEB are trying to promote electrical power to possible consumers.

“It is very odd. We in Save Rivers therefore urge the Chief Minister Adenan Satem and Sarawak Energy Bhd to stop constructing mega dams in Sarawak and dumping money on these white elephants, but instead go for alternative energy sources.”


PETER KALLANG is chairperson of Save Rivers.

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