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The Nation: Ratchaburi power plan



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      Ratchaburi power plant in
      for delay

      Egat officials confirmed yesterday that
      completion of the massive Ratchaburi
      power plant will be delayed, threatening the
      country with blackouts and raising new
      questions about the timetable for the
      Yadana gas pipeline. 

      Siridhat Klanklamdee, Egat's assistant
      governor, said construction of the first
      gas-fired unit, which is due to burn natural
      gas delivered by the pipeline from Burma
      starting in July, is likely to be delayed by
      about one month because of
      slower-than-expected progress from
      contractors building the plant. 

      However, a senior Egat official said the
      delay could last around three months
      because of the recent Cabinet resolution to
      comply with the International Monetary
      Fund's balanced budget policy for all state
      enterprises, which has forced Egat to
      postpone payments to suppliers and
      creditors for many projects, including the
      Ratchaburi plant. 

      ''Amid the slowdown in electricity demand,
      Egat could not convince the government to
      complete the power plant on time,'' said the
      Egat source, who asked to remain
      anonymous. 

      The issue of Egat's financial liquidity
      problems was raised several days ago by
      the Kalayanamitra Council's Pipob
      Udomittipong, a pipeline critic who testified
      before the national committee set up to
      review the pipeline project. Pipob said
      Egat would not be able to pay off its
      suppliers until the new fiscal year starts
      after Sept 30, and predicted the first
      200-megawatt combined-cycle unit of the
      Ratchaburi plant will not be ready to receive
      gas until November. 

      The delay has created new uncertainties for
      the Petroleum Authority of Thailand's
      pipeline project, which is currently being
      built through a pristine forest area in
      Kanchanaburi inhabited by several rare and
      endemic species. Critics have called for its
      route to be altered, which could become
      more feasible now that the power plant
      destined to use the gas won't be ready on
      time. 

      The PTT's reaction to Egat's news
      yesterday was relatively mild. The PTT has
      in the past responded to calls by
      conservationists to delay the project by
      insisting it must be completed by July 1 or
      the company would have to pay fines as
      high as Bt100 million per day. 

      Jira Chomhimvet, the PTT official who
      heads local operations for the project,
      revealed yesterday that while the PTT
      would indeed have to pay for the gas
      Burma is supposed to deliver even if the
      PTT can't receive it, the losses would be far
      less than suggested. 

      ''We can eventually claim the gas we pay
      for once the power plant is finished and the
      country is ready to take it,'' Jira said. ''In the
      end, the only money we will lose will be the
      interest.'' 

      The senior Egat official also disclosed
      yesterday that executives from Egat and the
      PTT will soon go to Burma to ask Burmese
      authorities to relax the penalty charge
      should the PTT be unable to receive the
      Burmese gas on schedule. 

      According to the source, the extra charge
      will be around Bt150-Bt170 million a month,
      depending on the exchange rate at the
      time. He confirmed that the charge is not
      simply a penalty fee but rather an advance
      payment for the gas since some flexibility is
      allowed under the gas sales contract. 

      He said Egat will help the PTT convince the
      Burmese about the reasons why the PTT
      cannot receive gas on time, even though
      Egat is not required to pay the PTT if the
      power plant is delayed. 

      This contradicted comments made at the
      pipeline committee meeting by Egat's
      Siridat, who said Egat had signed a
      ''take-or-pay'' agreement with the PTT, and
      so must pay for the gas even if it cannot
      take it. 

      Siridat said postponement of the
      commissioning of the Ratchaburi power
      plant will cause electricity brownouts and
      blackouts, each minute of which will cost
      the country Bt1.2 million. 

      ''The economic cost will be doubled if the
      blackout occurs in big cities or industrial
      zones,'' he said. 

      Without the Ratchaburi plant, the national
      electricity reserve capacity in 1999 will
      stand at only 10.2 per cent, far lower than
      the 25 per cent minimum requirement. The
      current reserve capacity is 12 per cent,
      according to the assistant governor. 

      ''We are well aware of the consequences
      [of the delay] and are speeding up
      construction of the project to try and finish it
      on time,'' he said. 

      Meanwhile, the national committee
      reviewing the pipeline project wound up its
      information-gathering yesterday and will
      now deliberate on recommendations to
      offer to the prime minister next week. 

      Testifying on the issue of safety concerns,
      the PTT's Vorachai Piyasuntaravongse told
      the committee that the petroleum firm has
      already paid insurance fees -- totalling
      US$10 million for the pre-commissioning
      period and US$30 million for the
      post-commissioning period -- to protect the
      lives of contractors, workers and people
      living along the pipeline route. 

      The insurance also covers sabotage and
      damage to villagers' houses. If the
      businesses of people living near the
      pipeline are affected by the existence or
      construction of the pipeline, they can also
      seek compensation, he said. 

      BY WATCHARAPONG THONGRUNG and
      PENNAPA HONGTHONG 

      The Nation