Community leaders in Belaga are calling for a formal revenue-sharing mechanism that would ensure Indigenous communities directly benefit from the electricity generated by the Bakun Hydropower Project.
The proposal was advanced through a working paper prepared by the Balui Lake Native Association (BLNA), chaired by Pemanca Tony Kulleh. The paper reflects concerns from communities affected by the dam — including families resettled to Sungai Asap and villages located upstream and downstream of the reservoir.
The proposal was presented at a recent steering committee meeting attended by elected representatives from Belaga and Murum, officials from Sarawak Energy Berhad (SEB), district authorities, and local community representatives.
Long-Standing Impacts
The Bakun Dam, which began operating in 2011, is the largest hydropower project in Malaysia, with a generating capacity of 2,520 megawatts. It plays a central role in powering Sarawak and contributes significant revenue to the Sarawak government through electricity sales.
But for many Indigenous communities, the economic benefits of the project have not translated into sustained local prosperity.
Around 10,000 people — primarily Kayan, Kenyah, Kajang, and Penan communities — were resettled during the dam’s construction. Communities have suffered from a loss of access to forests, river systems, resources and traditional livelihoods. This has threatened the cultural survival of many Indigenous groups in the area.
Community representatives have also raised concerns about land allocation at the Sungai Asap resettlement site, where families reportedly received significantly less agricultural land than originally promised, along with soil conditions unsuitable for long-term farming.
Proposed Revenue Mechanism
To address these ongoing issues, BLNA has proposed establishing a direct revenue-sharing framework tied specifically to Bakun’s electricity production.
Among the options suggested:
- Allocating between 1–2% of annual gross revenue generated by the project; or
- Applying a fixed per-kilowatt-hour contribution linked to electricity sales.
Under the proposal, funds would be placed in a dedicated Community Trust Fund governed by a board including representatives of affected communities, state authorities, Sarawak Energy, and independent experts.
The fund would prioritize:
- Livelihood development
- Education and healthcare
- Community infrastructure
- Environmental management
- Emergency reserves
Community leaders argue that such a mechanism would help correct long-standing inequities by ensuring that communities who bore the social and environmental costs of the dam share in its economic returns.
They have called on the Sarawak government and Sarawak Energy to establish a task force to review the proposal and begin structured consultations.
This article is based on reporting by Free Malaysia Today (FMT) and DayakDaily. All factual information originates from those reports. Read more about the struggles of Ulu Balui communities here.