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.