Archived press release

NGOs URGE SWISS COMPANY TO QUIT MALAYSIAN DAM

4 July 1996

More than 100 non-governmental organisations (NGOs) from 20 countries and nearly 30 members of the European Parliament are calling on the Swiss construction company ABB to pull out of its deal to build the controversial Hydroelectric Dam in Sarawak, Malaysia [1].

Within just a few days, the NGOs and MEPs signed up to a letter to ABB,sent by Friends of the Earth and six other environmental groups on Tuesday 2nd of July. The letter states that the project is based on outdated technology and that it is deeply hypocritical for a company purporting to be as progressive as ABB to be involved in it. ABB plays a leading role in the World Business Council for Sustainable Development.

On June 19th 1996, The Kuala Lumpar High Court ruled that the Bakun environmental impact assessment was conducted illegally, mainly because it did not take account of the view of local residents. In the meantime, the Malaysia Court of Appeal has ruled that work can continue on the dam until a full appeal is made by the dam developer, Ekran Berhad.

Sarah Tyack of Friends of the Earth said:

"We are extremely encouraged that so many groups signed up to this letter in such a short time and that many more signatures are still coming in. Given the well documented failure of the Malaysian authorities to consult openly during the planning of this project, and the High Court ruling, the continued participation of ABB along with other European investors will serve to seriously undermine their reputation. We are deeply disappointed that ABB, a company who portrays itself as a key player in the World Business Council for Sustainable Development, is involved in this project.They should pull out immediately".

As part of an investor lobbying campaign, Friends of the Earth will be seeking out any UK companies who have investments in ABB, Ekran Berhad or other companies who are playing a key role in the construction of the dam, to call upon them to withdraw their investments or avoid future investment agreements.

ENDS

NOTES TO EDITORS:

[1] An international consortium led by ABB won the $5.4 billion contract to build the 2400 megawatt dam in the State of Sarawak, Malaysia on June 13th 1996. The Bakun Dam will involve the forced resettlement of over 9,000 indigenous people and 69,000 hectares of pristine rainforest will be cleared for the dam reservoir. Agriculture, fisheries and water quality downstream of the dam will be adversely affected and the dam will carry the risk of a major catastrophe should it fail due to an earthquake, landslide or massive flood. There are also concerns that the projections of how much power the dam will produce are extremely optimistic.

The Bakun dam has been a controversial project since it was first proposed in 1962. The project was revived in the 1980s, but was again shelved in 1990, a decision which the Prime Minister of Malaysia, Dr Mahathir, said was "proof that Malaysia cared about the environment". The Prime Minister then supported the move to take it forward again in 1992.

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Published by Friends of the Earth Trust