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Green snags to buying Burma power
- Subject: Green snags to buying Burma power
- From: ausgeo@xxxxxxx
- Date: Wed, 02 Jul 1997 05:45:00
02 Jul 1997
The Nation
Green snags to buying Burma power
BY WATCHARAPONG THONGRUNG
ENVIRONMENTAL concerns in Burma which is scheduled to sign a memorandum of
understanding with Thailand on power supply on Friday may lead the
Electricity Generating Authority of Thailand to consider buying electricity
from China as an alternative, according to Egat Governor Preecha Chungwatana.
Preecha said Egat does not have high expectations for buying electricity from
Burma because power and power transmission projects in that country are likely
to face environmental problems. According to the MoU, Thailand has tentatively
agreed to buy 1,500 megawatts of electricity from Burma.
Citing the pipeline project to import gas from Burma as an example of problems
faced by the Petroleum Authority of Thailand, he said it is difficult for
power projects in Burma to materialise as transmission lines for this
electricity have to be built through Burma's rich forests before they can
reach the Thai border.
''If we buy electricity from Burma, the problems that will be faced by Egat
will be as severe as those currently faced by PTT which is running into strong
opposition from environmentalists. If transmission lines for Burmese
electricity are to be built, they have to be located in the northern region
where forests are even richer," he said.
Unless environmental problems are resolved, Egat will not push to buy
electricity form Burma and will consider other alternatives such as buying
from China which has already sent a list of potential projects to Egat for
consideration.
The MoU to be signed with Burma resulted from a recent trip by PM's Office
Minister Sompong Amornwiwat to Rangoon.
Preecha said the MoU will be modelled on the document signed with Laos. After
signing the MoU, Burma will send a list of projects which will be developed to
Egat. Egat will then negotiate with project developers. Both sides will sign a
head of agreement and power purchase agreement, respectively, if terms and
conditions are accepted.
Under the MoU, Thailand will buy electricity from 2007 and 2008. There is no
specific requirement on sources of energy which will be used in Burmese power
projects but most are expected to be hydro-power schemes like those in Laos.
Projects are likely to be located on the Kok and Salween Rivers. MDX and
Italthai are among the Thai firms which have conducted feasibility studies.
Preecha said the MoU is a starting point for energy cooperation and it can be
scrapped if there is no progress in developing projects.