Analysts have predicted that the bid is in order to secure the power source for Syed Mokhtar's jointly owned US$2 billion aluminium smelter plant in Sarawak. This new facility is estimated to need over a third of Bakun's expected 2,400 MW generation capacity.
The Asian Wall Street Journal has said Syed Mokhtar's GIIG Capital Sdn Bhd has agreed to pay the Malaysian Ministry of Finance RM945.4 million for a 60% block in Bakun project manager, Sarawak Hidro Sdn Bhd.
However, the already sealed preliminary agreement will see GIIG Capital buying only 10% of the company at first. The full 60% stake will be acquired over a period of four years.
Once it is completed in late 2007, the Bakun Hydroelectric Dam will be one of the largest rock-filled dams in the world. It will stand at around 205 metres high and will have a reservoir area larger than Singapore.
