start at the end of 2010. At the end of 2004, the minor partners in the Malaysia–China Hydro JV consortium (Ahmad Zaki Resources Bhd, WCT Engineering Bhd and MTD Capital) will report quarterly losses due to the Bakun project. Discounting this project, they would all be operating profitably for the quarter. For Ahmad Zaki Resources Bhd, this is the first time it will report losses since 1993. Ahmad Zaki estimates net losses suffered for nine months ending 30 September 2004 at RM4.55 million. WCT has reported a net loss of RM13.08 million for the quarter ending 30 September 2004 due to the Bakun project. MTD Capital reported a RM4.04 million loss in the quarter ending 30 September 2004 and attributed it to "a major project undertaken by the company in joint venture with both local and foreign partners" without specifically naming Bakun. The lead partner in the project, Sime Engineering reported a profit of RM521,000 for the same quarter versus a profit of RM4.18 million for the same quarter in 2003. Declines in profit were attributed to cost overruns and project delays. As of February 2007, there are three developments affecting the Bakun project. The first is the merger of the Sime Darby, Guthrie and Golden Hope into a new entity named Synergy Drive. The second is the proposed takeover of the Bakun project by the contractor, Sime Engineering. The third is the revival of the submarine HVDC cable under the South China Sea to transmit electricity from Borneo to Peninsular Malaysia. In November 2007, Sime Darby, the parent company of the contractor Sime Engineering will be merged with Golden Hope and Guthrie into a new company with a market capitalisation of RM31 billion (US$8 billion). Concurrently with the merger, the contractor Sime Engineering will takeover the ownership of the Bakun Dam project. Sime Engineering Sdn Bhd has filed a suit against AZRB over alleged breaches in the Malaysia–China Hydro joint venture agreement dated 12 June 2002 relating to the Bakun dam. AZRB was served with a writ summons and statement of claim dated 12 Oct by Sime Engineering claiming "RM15.24 million for alleged breaches by AZRB of the Malaysia–China Hydro JVA" relating to Bakun hydroelectric project package CW2 – main civil works. Sinohydro flawed construction procedures Chinese constructor Sinohydro has acknowledged that its construction procedures used for Bakun were flawed. The admission came after Sarawak Report reported that Sinohydro