KL embarks on $142b boost for Sarawak

Today Online 12 Feb 08;

KUALA LUMPUR — Malaysian Prime Minister Abdullah Ahmad Badawi yesterday launched a develop- ment project worth nearly US$100 billion ($141.8 billion) to fuel growth in resource-rich Sarawak state on Borneo island.

Mr Abdullah said the government will spend an initial RM5 billion ($2.2 billion) to kickstart the Sarawak Corridor of Renewable Energy, with private investment targeted at RM300 billion. The Sarawak plan focuses on developing energy resources of hydropower, coal, natural gas and petroleum.

The government is gearing up for elections expected in March and has launched another four big-budget masterplans worth billions of dollars to attract foreign investment and develop rural states over the next two decades.

The Premier said the project aims to bring economic growth and eradicate poverty in Sarawak by 2030, by creating 800,000 jobs and luring billions in private investment. The area earmarked for development is a 320km stretch along the Borneo coast facing the South China Sea, and covers 57 per cent of the state.

Officials say the main engine of growth for the project is the use of hydroelectricity supplied by the controversial Bakun Dam to power heavy industries.

Sarawak also signed 13 agreements yesterday with several firms, including a deal with global miner Rio Tinto Alcan for an aluminium smelter. — Agencies