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Bangkok Post - June 4,
2000.
Payment urged for Burma
gas
Overdue bill could affect relationship Nattaya Chetchotiros and Ampa Santimetaneedol
The former head of an arm of the state oil company has called on the
government to open talks about an overdue payment of US$280 million owed to
Rangoon for gas from the Yadana field.
Surakiat Sathirathai, who was executive chairman of PTT Exploration and
Production Plc, said instead of keeping silent the government should negotiate
for terms of payment, or explain the delay.
Its silence is a cause of discomfort for Thai officials in Burma, he
said.
Burmese Industry Minister Lun Thi and Finance Minister Khin Maung Thein had
asked him to pass the message on to the government.
Mr Surakiat also suggested Thailand pay US$22 million interest it owes
Japan.
"I think the government should make it clear when PTT will be able to make
the payment," said Mr Surakiat, who resigned from PTT in March to accept a post
as deputy leader of Thai Rak Thai Party.
PTT paid the Yadana group $50 million in the first year of the contract. It
was due to pay $280 million for the second year's supply contract in
February.
The payment represents the full contractual volume of gas PTT was obliged
to accept under a take-or-pay deal, even though the company was to take delivery
of only a fraction of the committed supply.
PTT failed to take delivery because of delays in the construction of the
Ratchaburi power plant, which began operation only in December and is still not
up to full capacity.
The Electricity Generating Authority of Thailand (Egat) has not signed a
gas purchase contract with PTT, leaving the state oil company solely
responsible. Next year's scheduled payment is almost $300 million.
Industry Minister Suwat Liptapallop, who oversees PTT, expressed
frustration over Egat's failure to sign a purchase contract, and the cabinet's
silence. He said he had raised the matter on several occasions but no action had
been taken.
"The prime minister only said that he sympathised with PTT. The cabinet and
the council of economic ministers have not taken any action.
"Should we continue to pay for the gas while Egat has no idea when the
plant will operate to its full capacity? It is not fair," he said.
The minister said the fault lay with Egat, which failed to complete the
construction of Ratchaburi power plant on time.
"It is not PTT's fault. It is Egat's fault and Egat still insists it won't
sign a gas purchase contract," he said.
Earlier, the cabinet approved the sale of government bonds to raise money
to pay for the natural gas.
Mr Suwat said PTT's failure to honour the contract could threaten the
relationship between Thailand and Burma.
He denied any conflict with PM's Office Minister Savit Bhodivihok, who
oversees Egat.
Saturday, June 03, 2000, updated at 16:33(GMT+8)
The People's Daily - Business Myanmar, Chinese Company Sign Cement
Plant Accord
The Myanmar Ceramics Industry authorities and a Chinese company signed an
agreement Friday on building a cement plant project in Kyaukse, central Mandalay
Division of the country.
The signing ceremony of the agreement between the state-run Myanmar
Ceramics Industry (MCI) of the Ministry of Industry-1 and the China National
Constructional and Agricultural Import and Export Corporation (CAMC) was
attended by Myanmar Minister of Industry-1 U Aung Thaung and Economical and
Commercial Counselor of the Chinese Embassy Jin Honggen.
Representing their respective parties, Managing Director of MCI U Than Shwe
and Chairman of the CAMC Ren Honbin signed the agreement.
The plant, whose capacity is to be 500 tons a day, will have machinery and
technology worth 16.5 million U.S. dollars. And it will be built within 22
months.
Myanmar produced a total of 338,007 tons of cement in 1999, a drop of 7.38
percent compared with 1998.
In recent years, Myanmar has sped up the pace of infrastructural
construction of roads, bridges and dams, resulting in a shortage of cement day
by day.
To meet the rising demand for cement, the Myanmar government has been
trying to build more cement plants.
Bangkok Post
- June 4, 2000.
GAS
PIPELINE PTT faces lawsuit over Yadana projectEnvironmental and economic
losses cited
Ploenpote Atthakor in
Kanchanaburi A conservation group in
Kanchanaburi will take legal action against the Petroleum Authority of Thailand
over economic and environmental damages caused by the Yadana gas pipeline, a
prominent activist said yesterday. Phinan Chotirosserani of the Kanchanaburi Conservation Group said he would
consult legal experts about the case, which would be the first of its kind
against a government or state agency. Under a take-or-pay deal with Burma, the PTT must pay US$250 million for the
gas this year, even though the delivery was delayed. Since the gas has not yet
been acquired, 7.42 billion baht in interest must be paid on loans taken out to
purchase the gas in advance. Academics and social activists said legal action against state agencies was
allowed under the constitution. The government and the Electricity Authority of
Thailand should also be taken to task, they said. Both Egat and PTT have refused to take responsibility for the mess and insist
that the public shoulder the burden. Pibhop Dhongchai, chairman of the Campaign for Popular Democracy, said the
government was warned that the gas contract would not be good for the country.
"The then PTT governor said that any damages would be the responsibility of the
PTT and that the government had nothing to do with it," he said. Decharut Sukkumnoed, of Kasetsart University's faculty of economics, said an
additional 16,000 million baht interest would have to be paid for the
construction of the pipeline. He said the Finance Ministry should step in to
help the state agency. High construction costs would make the gas more expensive than other power
sources, he said, adding that foreign loans for the project and high electricity
costs would hinder economic development. The nation had suffered huge losses in maintaining a high electricity reserve
which accounted for nearly 5,000 megawatts, Mr Decharut said. It is roughly estimated that one megawatt costs 22 million baht and the whole
reserve has already cost about 60,000 million baht. The project has also cost the country dearly in terms of environmental
damages, he said. "The government should show its responsibility, either legally
or politically," Mr Decharut said. Sataporn Maneerat, president of the Egat union, said the gas project was an
unnecessary burden for a country with excessive electricity supply like
Thailand. "The country does not need to invest in new power plants for at least 10
years, given the current economic situation."Mr Sataporn said the huge
investment required for the Yadana project and other losses were like
non-performing loans in the energy sector. Excessive electricity supply and
additional volumes from Yadana and Nam Theun in Laos would force Egat to
prematurely halt many of its operational power plants. This is because all the
take-or-pay contracts force Egat to pay even though the electricity is never
used in the wake of huge power reserves, he said. Consumers would have to foot the bill since Yadana gas seems to be more
expensive than local gas from the Gulf of Thailand and Khon Kaen. Police early on Sunday arrested three Christian activists in Beijing who had
planned to gather at a home to commemorate the victims, the Hong Kong-based
Information Centre for Human Rights and Democracy said.
The rest of the arrests were made in other Chinese cities, it said.
But there was no trouble in Tiananmen Square itself, where groups of plain
clothed police wandered among crowds of tourists.
Fewer police
On the edges of the square, police vans patrolled slowly, ready to detain
anyone attempting some form of commemoration.
The police presence was, however, noticeably smaller than in previous years.
In an open letter to Chinese President Jiang Zemin and Prime Minister Zhu
Rongji, eight dissidents from northeast China said the government had been
"absolutely wrong" to crush the seven weeks of protests centred on the square in
Beijing. They called for the release of political prisoners, for political reforms and
democracy, and for compensation for victims' families and the thousands of
people imprisoned in an ensuing nationwide crackdown.
The letter, drafted by dissident Liang Liwei and signed by the seven others,
also urged the government to reverse its verdict that the demonstrations were a
"counter-revolutionary rebellion" that had to be quelled.
Massacre
Troops backed by tanks and armoured personnel carriers shot their way through
the Chinese capital on the night of June 3-4 1989, killing hundreds, possibly
thousands, and ended the protests that sometimes drew crowds of more than a
million.
The government has never allowed an investigation or a full accounting of the
dead and injured.
To prevent commemorations, authorities stepped up security and extra military
police patrolled on Saturday in front of Tiananmen gate, which overlooks the
square in central Beijing.
Phone cut off
Veteran Beijing dissident Ren Wanding said police visited him on Friday and
"told me not to carry out any activities".
But that did not stop him from issuing a statement that paid tribute to those
"who died for a just cause".
Friends of Ding Zilin, a prominent campaigner for victims of the crackdown
whose 17-year-old son was killed, said plainclothes police were stationed
outside her house and that her phone had been cut off.
Ding planned to light incense and "silently remember her child," said Zhang
Xianling, who visited Ms Ding on Friday.
Ms Zhang, who also lost a 19-year-old son, said she placed flowers under his
portrait at home and would visit his grave.
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