The Sarawak state government has confirmed that tycoon Syed Mokhtar Al-bukhary acquired a 60 percent stake in the RM9 billion Bakun hydroelectric dam project in the state, a report said today.

Syed Mokhtar purchased the 60 percent stake in Sarawak Hidro Sdn Bhd, the main operator of the Bakun project, on Aug 30 via his privately-owned company GIIG Capital for RM945.42 million, Sarawak's Deputy Chief Minister George Chan was quoted as saying by the Malay-language Utusan Malaysia .

Syed Mokhtar also controls several key companies, including the Port of Tanjung Pelepas, and has interests in mines, hotels and oil palm plantations.

Chan said the state government is hoping to get control of 10 percent of the Bakun project but has yet to receive a decision from the federal government on the matter.

Environmental impact

The federal government, through the Minister of Finance Inc, controls the remaining 40 percent equity interest in the Bakun project following the 60 percent stake sale to Syed Mokhtar, the report said.

The controversial dam project which involves flooding an area the size of Singapore was revived in 2001 after being shelved during the 1997/98 Asian financial crisis.

The size of the dam has 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