Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : PUTRA WORLD TRADE CENTRE (PWTC),
KUALA LUMPUR
Tarikh/Date : 05/09/94
Tajuk/Title : THE 2ND AFRO-ASIAN INTERNATIONAL
CONFERENCE ON POWER DEVELOPMENT
I would like to take this opportunity to say `Selamat
Datang' to all delegates and guests, especially those from
the Afro-Asian countries. I wish our guests a pleasant stay
in Malaysia and hope you will remember your short stay with
fond memories.
2. This conference demonstrates our commitment to closer
ties in order to enhance South-South cooperation. I hope
this conference will lead to more exchange programmes, not
only in technical fields but also in enhancing social and
cultural ties.
3. I have been informed that this conference is held in
conjunction with our celebration of 100 years of electricity
in Malaysia. Electricity was introduced in this country
about 12 years after the birth of the electric utility
industry in the United States when Thomas Edison brought the
Pearl Street Generating Power Station on line in 1882.
4. Modern technologies require adequate and reliable
electricity supply to operate efficiently. Thus the demand
for electricity, particularly in developing countries with
rapid economic growth, will not only grow but must improve
in quality all the time.
5. A major challenge is to efficiently operate the supply
system in order to provide reliable and affordable
electricity to all categories of consumers. This can only
be achieved by adopting state-of-the-art technologies which
will enable developing countries to leapfrog and enjoy
world-class electricity supply.
6. A recent study by ESCAP indicates that about US$1.4
trillion would be required to finance infrastructure
development between 1993 and 2000 in the Asia-Pacific
countries. The power sector alone requires up to US$630
billion or 45 percent of the total. Only US$500 billion was
identified as available or already committed. Consequently,
the financial `gap' for infrastructure projects amounts to
around US$900 billion.
7. The provision of adequate infrastructure is one of the
prerequisites for sustainable economic and social
development. Developing countries must now examine and
`experiment' with non- traditional and virtually untried
methods to implement needed infrastructure development. The
ability to learn from failures is as critical as the
lessons from the success of any experiment.
8. The fundamental challenge before governments is to
improvise ways to advance the process of systematic change
and to guide it through successive stages to completion. The
issue is not whether reform should be more or less radical,
but how to ensure that the reconstruction of the
institutional structures and development of new norms do not
lag behind liberalisation and deregulation. The right
approach seems to be to marry boldness with realism.
9. Malaysia is fortunate because of its experience in
managing many forms of privatisation and privatised
projects. Progressive and phased removal of subsidies in
favour of the 'users pay' principle is now well accepted.
But that does not mean that the poor should do without.
With our strong desire to create a caring Malaysian society,
the 'haves' are made to or encouraged to extend assistance
to the ever fewer `have-nots' so they too can enjoy a
reasonably good life. There should not be poverty in the
midst of plenty.
10. In the power industry, we began with corporatising the
Government power authority and then selling off a
substantial portion to the employees and the public through
the listing of Tenaga Nasional Berhad (TNB) or National
Power Limited. In order to speed up the generation of
power, the Government allowed other investors to set up
Independent Power Plants (IPPs). However transmission and
distribution remain with TNB. TNB has already signed five
power purchase agreements with the IPPs. Over 4000 MW of
new capacities, representing about 30 percent of total
requirement will be provided by IPPs in Peninsular Malaysia
by 1998. Of course, there may be excess capacity. It is up
to the IPPs, and TNB to increase the consumption of power in
order to take up any excess. The power generation and
distribution business can contribute towards economic growth
and it should therefore be encouraged.
11. Successful privatisation of other types of
infrastructure, for example shipping, ports, airlines,
highways, telecommunications, water supply, sewerage and
airports provide us with the confidence to pursue and
implement other privatisation projects.
12. Although there are fears that private power generation
would lead to the neglect of our environment, Malaysia has
laws that ensure environmental compliance and protection.
Environmental impact assessments are mandatory for all major
power generation projects as they are for most industries.
We are equally committed to playing our role to protect the
global environment and achieve sustainable development.
Malaysia is a signatory to the International Framework for
Climate Change. Our goal to become a developed and
industrialised nation remains a high priority. We hope to
achieve this while limiting carbon dioxide emission, a
natural by-product of burning hydrocarbons for power.
13. One important carbon dioxide-free power source is
hydroelectricity. Malaysia is committed to developing the
Bakun project despite opposition from ill-informed
environmentalists. The area involved is relatively small
and every care would be taken to conserve as much as
possible. By all measures the development of hydro power is
less damaging to the environment than the perpetual burning
of fossil fuels. The oil and gas resources of our country
are not limitless but we will use it to create the necessary
national wealth for the development of the hydro power
potentials in Sarawak, which is sparsely-populated and rich
in hydro power.
14. Harnessing our vast hydro resources will enable our
country to switch from depleting to renewable energy
resources. The long-term positive impacts of hydro power
projects in reducing global greenhouse gas emissions far
outweigh the ecological impacts.
15. The economic reform towards the free market economy
sweeping the world must be managed well. Malaysia has
undergone the transformation from an agro-based to an
industrial economy in just over a decade. The progress
after the privatisation of TNB and the smooth introduction
of large IPPs has enabled Malaysia to build up a wealth of
experience.
16. It would perhaps be worthwhile for developing countries
to share the experiences in order to lessen the cost of
experimenting. Some Malaysians who have acquired expertise
in this area are keen to join in the power development of
other countries.
17. On that note, I have great pleasure in declaring open
the 2nd Afro-Asian International Conference on Power
Development.
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