Engineering work has begun on the controversial Bakun Hydroelectric Dam project, a finance ministry official said today.

Hashim Ismail, finance ministry parliamentary secretary, was quoted by Bernama news agency as telling lawmakers the civil work started on Oct 8 and was being carried out by the Malaysia-China Hydro Joint Venture consortium.

Environmentalists have protested against the size of the Bakun dam.

Hashim said Sarawak Hidro Sendirian Berhad, developer of the project, was in the process of offering contracts for the electrical and mechanical works related to the dam project.

The seven-member dam consortium is led by Sime Engineering Sendirian Berhad, a subsidiary of Sime Darby Berhad, while the main Chinese partner is China Water Resopurces and Hydro Power Engineeering Corporation.

Diversion tunnels

Physical construction work on the RM300 million river diversion tunnels in Bakun, the first component of the massive dam project, was completed early last year.

The nine billion ringgit hydro-electric dam project in the Sarawak state on Borneo island, which involves flooding an area the size of Singapore, was revived last year after being shelved during the 1997 financial crisis.

The size of the dam provoked an outcry from environmentalists worldwide for its effect on the environment and on 10,000 locals who were moved out to make way for the dam. They say the dam's capacity far exceeds future power needs. AFP