Did Sarawak overpay RM2.5 billion for the Bakun Dam acquisition?

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Sarawak Opposition Claims Significant Overpayment for Bakun Dam Acquisition

State Reform Party (STAR) president Lina Soo has asserted that the Sarawak government overpaid substantially in its acquisition of the Bakun Dam project. She contends that the state should have paid only a nominal RM1 to Sarawak Hidro Sdn Bhd (SHSB), the dam's owner and operator, rather than the reported RM2.5 billion. This acquisition, coupled with existing liabilities, places a considerable financial burden on the state and its populace.
Substantial Liabilities Inherited with Acquisition

Soo highlighted that the RM2.5 billion acquisition cost is only part of the overall financial commitment. The Sarawak government, through Sarawak Energy Berhad, is also assuming RM6.15 billion in liabilities from SHSB. This means the total debt burden associated with the Bakun Dam project amounts to RM8.65 billion, comprising the acquisition price and the inherited liabilities.
Significant Per Capita Debt Burden

The total debt of RM8.65 billion translates into a substantial financial obligation for the people of Sarawak. With an estimated population of 2.7 million, Soo calculated that each individual would be responsible for RM3,200 to service this debt. This considerable per capita debt is a key point of contention raised by the opposition regarding the acquisition's financial implications.
Increased State Indebtedness and Lack of Transparency

This acquisition will elevate Sarawak's existing debt to the federal government, placing it as the third highest among states, following Pahang and Sabah. Soo further criticised the state government's handling of the transaction, pointing to a perceived lack of transparency. She noted the absence of public consultation and disclosure concerning the acquisition costs, financing methods, projected cash flows over the next 50 years, and the anticipated return on investment.

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Did Sarawak overpay RM2.5 billion for the Bakun Dam acquisition?

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