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Date: Tue, 4 Jul 1995 16:31:36 -0700
From: Patrick McCully <patrickirn@igc.apc.org>
Message-Id: <199507042331.QAA20311@igc2.igc.apc.org>
To: ai268@freenet.carleton.ca, barber@server.uwindsor.ca, csc@web.apc.org,
        deb@edf.org, dwalker@earth.geology.ubc.ca, earthfirst@igc.apc.org,
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Subject: Review of 'Inadequate' Bakun EIA
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Status: RO

/* Written  4:30 PM  Jul  4, 1995 by patrickirn in igc:env.dams */
/* ---------- "Review of 'Inadequate' Bakun EIA" ---------- */

                INTERNATIONAL RIVERS NETWORK
      1847 Berkeley Way, Berkeley, California 94703 USA
           Tel: (510) 848-1155 / Fax: (510) 848-1008

                        PRESS RELEASE
                        JULY 5, 1995

            ENVIRONMENTAL IMPACT ASSESSMENT OF MALAYSIAN DAM
                      BIASED AND INADEQUATE
     Insufficient to Determine Costs and Benefits of Project

International Rivers Network today released a review of the
interim Environmental Impact Assessment (EIA) of the proposed
Bakun Dam in the Malaysian state of Sarawak. IRN commissioned
a team of experts in hydrology, river ecosystems and energy
planning to do the review at the request of citizens' groups
in Malaysia.

The 204 meter (670 ft) tall Bakun hydroelectric dam would be
the highest dam in Southeast Asia. Its 2400 megawatt
generating capacity would make it the largest power plant in
the region. More than 8,000 indigenous people live in the
70,000 hectares (173,000 acres) of rainforest habitat to be
flooded, an area larger than the island of Singapore. Twelve
"totally protected" animal species and 93 "protected" species
are found in this area. The trapping of river sediments in
the reservoir will both reduce power production from the dam,
and increase erosion of the downstream riverbed, banks and
delta. Water released from the reservoir is likely to be
heavily contaminated.

The review concludes that the interim EIA has basic
methodological flaws, fails properly to address several key
issues, and bases its conclusions upon inadequate data. The
Bakun interim EIA, says the review, "would not meet
internationally accepted standards for environmental
assessment" such as those of the World Bank.

Patrick McCully, Campaigns Director for International Rivers
Network, says:

     "This EIA is a clear attempt to rubber-stamp a dam which
     the Malaysian authorities and their friends in big
     business have already decided to build, no matter the
     environmental or social costs. Our review shows the
     interim EIA to be a thick wad of glib assertions, pro-
     dam bias, and poor science."

An EIA is supposed to be a neutral document which decision-
makers can use to assess whether the potential environmental
costs of a project will outweigh its benefits. It is supposed
to describe the costs and potential effectiveness of measures
taken to mitigate against negative impacts, and assess
alternative methods of achieving the aims of the project. The
Bakun interim EIA, however, is openly biased. It accepts that
the dam will be built, and blandly assumes, without any
supporting evidence or logic, that negative impacts will
somehow be mitigated by further studies.

The reviewers also criticize the interim EIA for deliberately
excluding a full sociological analysis of the people to be
displaced by the Bakun reservoir. Numerous studies show that
people evicted to make way for dams suffer a serious drop in
their living standards. Indigenous people leading subsistence
lifestyles, such as those to be resettled because of Bakun,
suffer particularly badly when they lose their traditional
homes, lands and ways of life.

The reviewers conclude that because of the omissions and
other serious flaws, the interim EIA "does not provide an
adequate assurance to potential investors and lenders to the
Bakun Project that the economic benefits of the project will
be greater than the overall costs." Only by passing the major
environmental costs of the project onto local people, and by
providing government subsidies, might the project be
considered profitable, the reviewers state.

The 9-volume interim EIA was commissioned by Ekran Berhad,
the huge Malaysian company which was selected without tender
to build and operate Bakun. The powerful chairman of Ekran,
Ting Pek Khiing, is a friend of the Chief Minister of
Sarawak, Abdul Taib Mahmud. Two sons of the Chief Minister
are major shareholders in Ekran.

The environmental assessment of Bakun has been shrouded with
secrecy and confusion over which government agency has
oversight over the EIA process. The interim EIA is still
considered a state secret in Sarawak. Part of the final EIA
has recently been made available for public viewing in
Sarawak but it has not been possible to make copies of the
300-page report. Activists who have seen the final EIA say it
is 'vague' with little detailed information.

For more information contact:
Patrick McCully
Campaigns Director
Tel. 510 848 1155
Fax. 510 848 1008
E-mail patrickirn@igc.apc.org
                                
_____________________________________________________
                                
                         A Review of the
        Environmental Impact Assessment (Interim Report)
               of the Bakun Hydroelectric Project
                                
                       -- S U M M A R Y --
                                
International Rivers Network (IRN) has been requested by
citizens' groups in Malaysia to carry out a review of the
adequacy of the interim Environmental Impact Assessment of
the Bakun Dam, a 204-meter-high hydroelectric dam proposed
for construction on the Balui River in the Upper Rajang Basin
in the state of Sarawak.  If completed this dam would be the
highest and most powerful dam in Southeast Asia. IRN asked a
team of experts in hydrology, river ecosystems and energy
planning to prepare this review. Following are the main
conclusions of the 17-page review.

1.   The interim EIA provides useful information on a number
of major impacts which would result from the dam.  These
include:

   *   Serious deterioration of water quality in the
reservoir and in the river downstream.
   *   Significant salt water intrusion in the river due to
reduced flows downstream of the dam, potentially affecting
tens of thousands of people.
   *   Forcible relocation of at least 8,000 indigenous
people living in the reservoir area.
   *   A substantial risk of the introduction and spread of
waterborne diseases.
   *   A remote but tangible risk of catastrophic downstream
flooding due to dam failure.
   *   Degradation of fish habitat and loss of fishery
resources downstream of and in the inundation area.
   *   Inundation of 69,640 hectares of terrestrial habitat,
significantly affecting 12 totally protected species of fauna
and 93 protected species.
   *   Inundation of socially and economically important
plant species, including timber and 1,230 species used for
medicines, food, fiber and other social uses. Hundreds of
millions of dollars in annual timber revenues would be lost.

2.   Almost all of the environmental and social impacts
identified in the technical reports translate into long-term
economic costs that would be borne by the Government of
Malaysia and local people rather than the dam owners.

3.   Although the interim EIA provides information on impacts
of the project its usefulness is severely limited by basic
methodological flaws.  These include:

   *   An inadequate description of the no-project
alternative that apparently includes complete logging of the
watershed rainforest whether or not the project is built.
   *   There are no attempts to evaluate alternative methods
of energy generation.
   *   A fundamental misunderstanding concerning the purpose
of a mitigation measure.  Mitigation measures are meant to
compensate for or ameliorate environmental damage -- studies,
contrary to what is inferred in the interim EIA, do not
mitigate for damage.
   *   There is no systematic evaluation of the long-term
impacts of the dam, or of the interactions between the
various different short- and long-term impacts.

4.   The interim EIA is incomplete because it fails to
address properly several key issues:

   *   Forcible resettlement of indigenous people living in
the reservoir area.  This issue was specifically excluded
from the scope of the EIA.
   *   The consequences the dam would have on the river
estuary, especially the likely increase in coastal erosion
and ecological changes caused by reduced flows of freshwater.
   *   The effect of the reduced frequency and duration of
floods on the downstream floodplain ecosystem.
   *   The impacts of habitat fragmentation on wildlife
populations upstream of the dam.
   *   The magnitude of the loss of fish species upstream and
downstream of the dam and how this loss would affect regional
biodiversity and local subsistence fishery resources.
   *   Identifying the area downstream at risk due to dam
failure.

5.   The interim EIA is inadequate because several of its key
studies had to rely on inadequate data or did not disclose
the substantial uncertainties in their predictions.  For
example:

   *   The analysis of downstream hydrology and water quality
relies on monthly flow averages, whereas the Bakun Dam could
have significant effects on daily flows.
   *   Predictions of sediment build-up in a reservoir can
easily be an order of magnitude incorrect, greatly affecting
predictions of power production and the useful life of the
project, and thus affecting project economics.
   *   Projected impacts on fish species are based on limited
water quality and hydrological information, and limited
knowledge of the migration, reproduction and other behaviour
patterns of the relevant fish species.
   *   Mitigation measures proposed are unproven or clearly
beyond the capability of the project sponsor to implement.

6.   The interim EIA does not adequately explain the
rationale for investment in hydrogeneration at this location
as opposed to other forms of energy generation at other
locations that might better meet Malaysia's power needs.

7.   The interim EIA would not meet internationally accepted
standards for environmental assessments as adopted, for
example, by the World Bank.  The separation of the social
impact study from the rest of the interim EIA is a major
flaw.  The interim EIA essentially proposes that the Sarawak
State Government dictates terms to the displaced population
by deferring negotiations until after the decision to build
the dam is made.

8.   The interim EIA seldom uses or refers to the extensive
experience of assessing the environmental costs of large
reservoirs constructed in tropical areas over the last two
decades.

9.   The interim EIA displays bias towards constructing the
project. The interim EIA does not quantify the natural,
social or economic costs of the identified impacts of the
project, nor does it identify the beneficiaries of the direct
and indirect gains.

10.   The interim EIA does not provide an adequate assurance
to potential investors and lenders to the Bakun Project that
the economic benefits of the project will be greater than the
overall costs.  Only by externalizing major costs, and
providing government subsidies might the project be
considered profitable.

The 17-page review was prepared for International Rivers
Network by PHILIP B. WILLIAMS, Ph.D., P.E.
(Philip Williams & Associates, Ltd., Consultants in
Hydrology)
WILLIAM TRUSH
(Director, Institute for River Ecosystems, Humboldt State
University, California, and McBain & Trush, Consultants in
Fluvial Geomorphology)
SCOTT McBAIN
(McBain & Trush, Consultants in Fluvial Geomorphology)
JENNIFER VICK
(University of California, Berkeley, Department of
Environmental Planning)
AGUS SARI
(University of California, Berkeley, Energy and Resources
Group)
ANDREW WILCOX
(University of California, Berkeley, Energy and Resources
Group)
KAREN PLAUT
(University of California, Berkeley, Energy and Resources
Group).

International Rivers Network
1847 Berkeley Way
Berkeley, CA  94703 USA
Tel: (510) 848-1155
Fax: (510) 848-1008

July, 1995


