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Burma Related News - June 4, 2000.



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 project

Environmental 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.

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.
 
BBC-Sunday, 4 June, 2000, 06:10 GMT 07:10 UK
China quells Tiananmen protests
 
The Chinese authorities are reported to have arrested nine people as they quelled protests marking the 11th anniversary of the bloody suppression of the Tiananmen Square pro-democracy movement.

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.