Prime Minister Dr Mahathir Mohamad said today the RM9 billion (US$2.4 billion) Bakun dam in the eastern Sarawak state on Borneo island would begin to generate power in 2007.

"In 2007, the Bakun dam will be ready and will generate 2,400 megawatts of electricity. We want the industries in Bintulu to consume the power," he was quoted as saying by Bernama news agency.

Mahathir, who is on a visit to Sarawak's Bintulu, which is rich in oil and gas, would be promoted to be a hub for heavy industries such as aluminium smelting and iron and steel.

The prime minister said the power could also be utilised by others in Sarawak state and neighbouring Sabah state.

"The Bakun project is criticised by various groups, including those from the West, but we continue with this power infrastructure project," he said.

Heavy industries in Bintulu

Mahathir said the government had received numerous request from foreign investors to operate their heavy industries in Bintulu.

The controversial dam project which involves flooding an area the size of Singapore, was revived last year after being shelved during the 1997 financial crisis.

The government, however, abdandoned plans for the world's longest undersea cable network to transfer power to peninsular Malaysia.

The size of the dam had attracted fierce criticism for its effect on the environment and on around 10,000 locals who have already been moved out of their homes. Environmentalists say the dam's capacity far exceeds future power needs in Sarawak. — AFP