Monday 16 March 2015

Anti-Baram dam activists smearing our name, SEB accuses


By Simon Peter
KUCHING, March 16, 2015. - The state-owned power supplier Sarawak Energy Berhad (SEB) said  today it is disappointed to note the latest chapter of the long running international campaign to smear its name and the state government by  Sarawak's anti-development activists in Manila.

A statement on its website said SEB has complied with the standard requirements for the proposed loan from the Asian Development Bank (ADB) when submitting a Resettlement and Ethnic Minority Development Plan (REMDP) last September.

Protesters at the proposed Baram site


It said that REMDP sets out the process that has been followed in relation to the acquisition of land and easements for the relevant transmission line and can be accessed from the ADB’s website at:
http://www.adb.org/projects/documents/trans-borneo-power-grid-sarawak-west-kalimantan-transmission-link-malaysia-sep-2014-remdp

"The interconnection of Mambong in Sarawak to Bengkayang in Kalimantan, Indonesia is an integral part of the ‘ASEAN Master Plan for Connectivity’or the  ASEAN Grid.

"The project involves the construction of a new 275kV double-circuit transmission line from the existing 275/33kV Mambong substation to the Sarawak-Kalimantan international border, a stretch of 46.8km," the statement said.

Thomas Jalong and Caroline Nyurang at the ADB headquarters in Manila

It said the Trans Borneo Power Grid is a project of regional importance in the on-going quest to achieve economic prosperity, environmentally sustainable growth and regional integration.

"The ADB played an important role in facilitating the early stage of negotiations between Sarawak Energy and PT PLN (Persero). The negotiation of a loan from ADB to Sarawak Energy for the Malaysia section of the line has been underway for some time," the statement explained.

While SEB does not need the ADB loan to fund the project (which is on track to be completed this year), the statement said SEB is keen to explore the potential for the ADB to support Sarawak Energy’s exciting plans for further interconnections in the region.

Anti-dam SAVE Rivers Network, in a statement today, had claimed that ADB would review a proposed US$ 45 million loan to SEB for a power transmission line over allegations of corruption and failure to duly consult and compensate affected indigenous communities.

Indigenous representatives from Sarawak highlighted their concerns about the loan in meetings with ADB's Office of Anti-Corruption and Integrity and senior bank staff, last week.

They presented to the bank the results of a "fact-finding mission" to the communities affected by the power line.

Caroline Nyurang from SAVE Rivers said: “ADB is taking our concerns very seriously and has initiated an in-depth due diligence process for the proposed loan to SEB.”

As a result of the NGO complaint, Nyurang alleged the proposed SEB loan is currently undergoing intense scrutiny which includes a review of SEB’s corporate structure, track record and procurement practices.

 She also alleged that the bank was committed to upholding its safeguard standards, including meaningful consultation and functioning grievance mechanisms.

Thomas Jalong, president of Malaysian indigenous peoples’ network, JOAS, said: “We are confident that ADB’s due diligence process will reveal safeguard violations by SEB with their transmission lines as well as with other energy projects.”

ADB, however, has not issued any statement regarding to the claims by the activists.

SEB's statement gave detailed and lengthy explanation to rebut the claims by SAVE Rivers and JOAS, saying in the implementation of the project, no communities were resettled and no ethnic minorities affected in the broad sense (other than landowners belonging to communities so defined), and neither has there been building of any significant structures within the Corridor of Impact (COI).

The statement pointed out that the route was carefully selected to ensure minimal impact through consultations with project affected communities and exploring alternative design and sites by avoiding residential areas as well as public recreational areas, public amenities and facilities and sensitive areas that affect the livelihood, customary uses and ecological system.

"The final line route is subjected to the ground sentiments brought up by the affected land owners and also due to technical requirements," the statement said.

The statement also said that prior to the commencement of this project, through the SEIA process, and during project implementation phase, engagements with the land owners were on-going and were implemented through group briefings with community leaders and relevant agencies
with the land owners, and followed by one-to-one engagement.

On the compensation, the statement said the acquisition of land and easements for SEB’s transmission projects is undertaken in consultation with affected communities, with deep respect for the customs or adat of Sarawak’s indigenous groups.  

"In this process, Sarawak Energy is committed to comply with ADB’s Safeguard Policy while maintaining consistency with the Sarawak Law. 

"Over many decades, SEB’s Land and Wayleave team has accumulated deep local knowledge and expertise in these matters and the company makes a particular effort to be a model corporate citizen in this regard."

The statement said compensation is paid according to rates determined by the Sarawak Government, after agreement is reached with the affected landowners.

"Where there is dispute, Sarawak Law provides for legal recourse through the Native Court process as well as the normal judicial channels.

"This was necessary due to the complexity of land issues pertaining to claims of both Native Customary Right (NCR) Land and Titled Land.

"Throughout the engagement process, SEB worked with the Land and Survey Department to secure the owners’ consent and to ensure that compensation are paid accordingly."

Updated information on the status of compensation and land acquisition as at February 2015:

(i)    Rates for Crops Compensation
The rate paid for crops compensation for this project was based on the government’s published rate with additional ex-gratia payment determined by Sarawak Energy.  Hence, the crops compensation rate for crops paid by Sarawak Energy is higher than the published rate.

(ii)    Landowners Due for Crops Compensation
The only monetary compensation due and that has been paid so far is to landowners whose crops were affected in the implementation of the project. This is separate from the land acquisition process, and relates only to damage to crops in building access roads and the such within the easement.  

The finalised or actual number of affected people within the easement is 549.  Out of this, 547 or 99.6% have been compensated since July 2012, leaving only two cases under dispute.  This supersedes the earlier estimated number of 590 people mentioned in the REMDP.

(iii)    Payment for Land Acquisition for Tower Bases
Payment for land acquisition for tower bases will be made as soon as Sarawak’s Land and Survey Department has completed the valuation process for the plots affected.  Once this is concluded, Sarawak Energy will transfer the compensation amount to the Land and Survey Department who will then make payments to the affected land owners. In Sarawak, this is the process under which all compensation for land acquisition is paid out and is the same for other development projects. 

 As the land was a mixture of titled and customary rights, different issues were raised regarding compensation with grievances addressed in a case by case basis.  Sarawak Energy follows its legal obligations and provides a fair opportunity to redress or remedy a situation.

External Validation:  As part of the ADB’s standard process for these matters, SEB’s implementation of the process outlined in the REMDP is presently being validated by an external monitor.

The outcome of that external monitoring will also be made public.

The statement urged anyone concerned about land matters to contact the company directly and to be wary of international anti-development bodies who seek to exploit those concerns as a marketing tool for their irrelevant agendas.

"This coalition of anti-development NGOs have focused their energies on any means possible to stop Sarawak’s plans to develop itself, raise its peoples’ standard of living and alleviate poverty, without offering any meaningful alternatives.

"This is especially apparent in their report to ADB which is based on a ‘fact-finding mission’ conducted without the formal assurance of independent verification," the statement concluded.

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