KUCHING, Nov 5 (Bernama) -- The Bakun hydroelectric dam in Sarawak may begin producing 300 megawatts (MW) of electricity in the last quarter of 2010, according to Zulkifle Osman, managing director of Sarawak Hidro Sdn Bhd, the project developer.

He said the Bakun dam, the world's second highest concrete-faced rockfill dam, is expected to be completed by end of 2011, with eight hydroelectric turbine-generator units with total installed capacity of 2,400MW for supply to Peninsular Malaysia, Sabah and Sarawak, Brunei and Kalimantan.

"The impoundment of the dam will start in January next year. However, it is subject to the state government's approval and the impoundment will take a minimum of eight months," Zulkifle said at a media briefing here last night.

"The first turbine will start operating when the whole reservoir flooded. By then, the Bakun Hydroelectric dam will generate 300MW of electricity by October or November next year," he said.

Sarawak Hidro, a wholly-owned subsidiary of the Minister of Finance Incorporated Malaysia, has been entrusted to develop and manage the Bakun hydroelectric project since May 1, 2000.

A special-purpose vehicle, comprising Tenaga Nasional Bhd (TNB), Sarawak Eenergy Berhad (SEB) and the Sarawak government as shareholders, will be set up to operate the Bakun dam based on a lease.

The Bakun dam is the largest hydropower project in Malaysia with an installed capacity of 2,400MW. It is located on the Balui River in the upper Rejang River basin, 37 kilometres upstream from Belaga town.

The project was conceived to support the federal government's fuel diversification policy, by providing a renewable and clean source of energy and aiming to significantly contribute to meet the increasing demand of electricity.

Sarawak Hidro's general manager Tan Yong Long said construction of the Bakun dam to generate 2,400MW electricity was 92.84 per cent completed as of September this year.

Tan said the dam is expected to be fully operational by end of 2011, and would still require the laying of submarine cables to transmit electricity to Peninsular Malaysia.

"The first 675-kilometre long submarine cable will link Sematan in southern Sarawak to Tanjung Leman in Mersing, Johor, and is expected to be completed in 2016 to transmit 1,700MW of electricity to Peninsular Malaysia," he said.

On the environmental impact, Tan said wildlife found in areas that are to be inundated were being rescued and moved to unaffected areas, together with valuable flora such as rare plants and trees.

"We are clearing a total area of 455 hectares at selected areas for future development along the shoreline, within 15km radius of the dam. The work commenced in January this year," he said.

"On wildlife rescue, we collaborated with Sarawak Forestry Corporation on at least six targeted islands formed during the impoundment, within 50 kilometres upstream of the dam. Plant rescue started in July this year. Animal rescue will commence once impoundment starts," he added.