Sarawak government is set to receive minimum royalties of at least RM201 million yearly from Bakun hydroelectric dam fully commissioned according to national a report on Monday.
“Beginning October, the state government is projected to receive RM320mil in royalty payments from the developer of the RM7.8bil project,” The Star news reports said.
“The project developer, Sarawak Hidro Sdn Bhd, will pay RM162.3mil in a one-off special payment to the state government, plus RM155mil in water royalties and RM3.6mil in licensing fees,” The Star quoted it source as saying.
“The royalties and licensing fees (for generation of electricity) will then become an annual payment from next year,” the source said, adding that the RM162.3mil one-off payment was for the cost of the project that the state government had sustained.
“These payments are expected to be paid to Sarawak after September 2010, when the dam is scheduled to start generating electricity,” said the source.
Sarawak will also expected to earn annual royalties from the sale of electricity to the peninsula once the 670km submarine cable is laid at the bottom of the South China Sea between Kuching and Johor.