ABB is still waiting for the Malaysian government to proceed with the US$3.9B Bakun dam and hydro project in Sarawak state in the island of Borneo. The 2400MW project was delayed in October 1997, citing differences on contrac-tual terms and falling power demand.
In 1996, a consortium made up of ABB and Companhia Brasileria Projectos e Obras (CBPO) of Brazil was awarded a US$2.5B contract to supply 6x420MW generators, a high voltage direct current transmission system, the installation of a 650km submarine cable, and some civil engineering components of the project. Malaysian shelving of the project ended in ABB taking a US$102M charge on its 1997 earnings. After delaying the project, the Malaysian government took over Bakun from the original developer led by infrastructure firm Ekran Bhd, and paid compensation. With the recovery of the economy, the Malaysian government has been considering a smaller 500MW project compared to the earlier planned 2400MW plant.