SALWEEN WATCH UPDATE

 

JANUARY 2001 - APRIL 2001, VOL. 10.

 

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Contents:

1. JAPAN MAY PROVIDE AID TO MYANMAR

World Bank News Roundup, fromWorldNews.com, Fri 6 Apr 2001

2. US$17 M DEBT RELIEF IN JAPANESE GOVT GRANT

Myanmar Times:  April 2-8,2001   Volume 3, No.57

3. LETTER OF CONCERN TO THE JAPANESE FOREIGN MINISTER REGARDING RESUMPTION OF AID TO THE BALUCHAUNG HYDROPOWER PLANT

Karenni Evergreen: April 22, 2001

4. STATEMENT OF KARENNI EVERGREEN REGARDING THE PROPOSED JAPANESE GOVERNMENT GRANT OF 3.5 BILLION YEN TO THE SPDC FOR THE REPAIR OF LAWPITA HYDROELECTRIC POWER STATION NO-(2) IN KARENNI.

KEG Statement No - 01/2001

5. INSIDE SOURCES – LEAKS FROM THE CORPORATE STRUCTURE.

Anonymous; February 2001

6. SALWEEN PROJECT DUSTED OFF. Bangkok Post: March 21, 2001

7. CHAVALIT PROPOSES TO HELP DEVELOP BURMA: “Feeling comes from 'bottom of my heart'” Wassana Nanuam, Bangkok Post;  April 9th 2001

8. CHINESE PLANNING TO DIVERT WATER TO THE NORTHWEST PART OF CHINA FROM UPPER SALWEEN, UPPER MEKONG AND UPPER BRAMAPUTRA?

International Rivers Network dated March 2001

9. PLANT FUELS POLLUTION CONCERNS.  The Nation; April 23, 2001

10. SHANS TAKE PART IN THE ANTI-POWER PLANT PROTEST

Shan Herald Agency for News,  22 April 2001,  No: 04-18

11. STOP FIRES BEFORE THEY TAKE HOLD. Commentary on the Politics of the Tachilek Power Plant and the Environment  By Wasant Techawongtham, Bangkok Post: April-27, 2001

12. DAM CREATES BANGLADESH, MYANMAR TENSION. China Daily; Agencies via Xinhua. 15th January 2001
13.
KAREN REBELS BOAST OF MARCH 5 CONQUEST:  DAM HEAD TAKEN, THREE DEAD IN RAID. Supamart Kasem, Bangkok Post. March 11, 2001

14. SINO-THAI POWER SHARING DEAL STRUCK. By Julia Han, South China Morning Post, Friday, November 10, 2000

 

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1. JAPAN MAY PROVIDE AID TO MYANMAR

 

World Bank News Roundup.

From: WorldNews.com, Fri 6 Apr 2001

 

Japan may provide Myanmar (Burma) with about $23.89 million for humanitarian aid and pave the way for full resumption of official development assistance (ODA), which it halted in 1988, Reuters notes Jiji news agency reported yesterday. The aid will be aimed at repairing a power plant and also to promote dialogue between the country's military regime and pro-democracy movement leader Aung San Suu Kyi, Jiji said.

 

Japan has provided Myanmar with technological aid and grants for humanitarian purposes since 1995, but has held off from resuming full-fledged assistance since Myanmar's military crushed a pro-democracy uprising. But last month, notes the story, Kyodo news agency cited officials as saying that Tokyo was considering resuming full ODA because it saw a softening in the military government's stance. Myanmar has been requesting Japanese support for such projects as dam and road construction, domestic media said.

 

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2. US$17 M DEBT RELIEF IN JAPANESE GOVT GRANT

 

From: Myanmar Times:  April 2-8,2001   Volume 3, No.57

 

MYANMAR has received debt relief from the Japanese Government to the value of US$17 million following a formal signing ceremony last week involving Deputy Minister for Finance and Revenue, Brig-Gen Than Tun, and the Japanese Ambassador to Myanmar, Mr Shigeru Tsumori.Mr Tsumori told the Myanmar Times his government provided such grants to Myanmar to promote constructive economic development, and said it had nothing to do with politics although “we, and also other countries, hope (for) the improvement of (the) political atmosphere in Myanmar”.

 

The Ambassador said Myanmar was rich in natural and human resources, and urged that they be used more productively.Mr Tsumori also quoted Senior General Than Shwe’s Armed Forces day speech in which he said that “without political stability, the economy can not achieve significant growth”.“Every year, the Myanmar government repays a certain amount of money to the Japanese government. And, at the same time, we provide the same amount of money in the form of grant,” Mr Tsumori said.“This is a kind of assistance that the Japanese government usually provides to Myanmar, and also to other countries like Bangladesh and Nepal.“As to some people saying Japan has completely suspended its Overseas Development Aid (ODA) to Myanmar since 1988, it is only partly correct.

“We have been providing money in some forms of grant, particularly for humanitarian assistance.“Myanmar and Japan have been very good friends,” the Ambassador said.“Many Japanese are traditionally very sympathetic to Myanmar and its people. Of course, it is our common desire and duty to strengthen and improve the existing friendship.”Mr Tsumori said his government would like to cooperate with Myanmar in the exchange of technological equipment and expertise, elements which were “badly needed in this country”.And he said he hoped that “more and more Japanese companies” would invest in Myanmar.

 

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3. KARENNI EVERGREEN LETTER OF CONCERN REGARDING RESUMPTION OF AID TO THE BALUCHAUNG HYDROPOWER PLANT

 

Date: April 22, 2001

 

Mr. Yohei Kono

Minister of Foreign Affairs

Ministry of Foreign Affairs

2-2-1 Kasumigaseki

Chiyoda-ku, Tokyo 100-8919 JAPAN

 

Dear Sir,

 

Recent information that we have received indicates that the Japanese government is considering a grant of 3.5 billion Yen for the repair of the Baluchaung Hydroelectric Power Station No-2 in Lawpita, Karenni state.

Most of the electricity from the two Baluchaung hydropower stations goes directly to central Burma. Despite officials' promises, after many decades there is still no electricity for the indigenous people who have lived for generations in the areas near where the power stations have been built. Indeed, many indigenous people have lost their homes, farms, gardens and their sources of food as a result of the project. The project has caused much suffering but has given very limited benefits for the Karenni and other ethnic peoples of Burma.

            Without at all wishing to be impolite, we would like to ask how much of the 3.5 billion Yen does the Burmese SPDC government promise to repay as compensation to the indigenous peoples who have been displaced from their homes in the vicinity of the Baluchaung power stations? We would also like to know who would ensure that money for the project is not spent on setting more landmines around the power stations. Furthermore, who can guarantee that no more forced labour and other human rights abuses will take place in regard to the maintenance and repair of the power stations and related infrastructure?

On behalf of the Karenni indigenous people, we in KARENNI EVERGREEN strongly encourage the Japanese government to reconsider any intention to make the proposed grant. We ask that any such assistance be granted only after receiving approval from the indigenous people who are directly affected from the projects. We are convinced that if the military continues holding and abusing power in the ways our people are unfortunately very familiar with, the right time has not arrived to make such a grant.

 

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4. STATEMENT OF KARENNI EVERGREEN REGARDING THE PROPOSED JAPANESE GOVERNMENT GRANT OF 3.5 BILLION YEN TO THE SPDC FOR THE REPAIR OF LAWPITA HYDROELECTRIC POWER STATION NO-(2) IN KARENNI.

 

KEG Statement No - 01/2001

 

            In accordance with SPDC's request, the Japanese government made a decision to grant 3.5 billion yen (about 24 million in US$) for the repair of Baluchaung hydroelectric power station No-2 in Karenni State.

            Even though the Japanese government said that the assistance is for humanitarian aid for the poor. Indeed the benefit will be for industrialization, heavy investment of companies as well as for the ruling junta.

            For the indigenous people in Karenni, they had lost their farms, gardens, natural beauty, traditions and culture, their daily life style, their freedom to travel and their security under the thickly spread SPDC troops and landmines for both No-(1) and (2) hydroelectric power stations. The benefits for the Karenni are very limited. Mahtawkhu, a village that is very close to power stations has still no electricity. Other villages around the Loikaw vicinity had electricity but with low power. The light can't even be used by students to study.

            For the recent need of repairing, KEG strongly believes the need of mechanical repair as well as physical repair. Long term destruction on Karenni rainforest, climatic changes and water shortage crisis had occurred in Baluchaung. It was more serious after the building of hydroelectric power station No-(1) in 1986. That would have adverse effect on farmers who own farms on both banks of  Baluchaung river. The right to take water for irrigation will be refused if the water levels go down to the lower level for two hydroelectric power stations. This has already happened in 1998-1999.

            And who will ensure that the SPDC could spend all 24 millions US$ on repairing? Will the forced labor take place or not? How much can SPDC recover for those who had lost their home, land and belongings?

            On the other hand, security has become a reason that SPDC tried to set its troops up and set more landmines in the area. That will be threatening to the life-security of local indigenous people. 

            That is why, if SPDC still hold its power on Burma ruling, if democracy and nationality rights are still suppressed, if oppression on nationality are still on going, if the assistance will benefit only the ruling junta and not for the local indigenous people, this is not a suitable time to give a grant for the repair of hydroelectric power station in Karenni. We strongly encourage that any assistance that will go to Burma ruling junta may need to ask the desire of local indigenous people directly affected by the project.

 

(Executive committee)

KARENNI EVERGREEN

 

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5. INSIDE SOURCES – LEAKS FROM THE CORPORATE STRUCTURE

 

Anon; February 2001

 

According to sources close to the Electric Power Development Corporation, the group that carried out the feasibility study for the Ta Sang dam, since at least December 2000 bidding is underway for the contract to carry out the final stage “Detailed Design Study” for the dam. People within the corporation allegedly claim that EPDC is not to be the first choice of those offering the contract for the study. Negotiations for the study bid were being held with a non-Japanese company. There were said to be 7 or 8 other tenders. It was said that if negotiations with the company of first choice fell through it was still possible for EPDC’s bid to be accepted.  It is not known which other companies had bid for the study contract.

 

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6. SALWEEN PROJECT DUSTED OFF

 

Bangkok Post: March 21, 2001

 

The Salween project, a 20-year-old water diversion scheme, is being dusted off with an eye on public right to information and participation as well as sensitive international relations along the Burmese border.

 

Siriporn Sailasuta, director-general of the Department of Energy Development and Promotion, said the agency was taking up the project to find ways to fight drought and fill up the drying Bhumbibol reservoir in Tak province.

 

She said the project would not go ahead if the public was against it and environmental impact management proved unattainable.  The diversion course would liely go through precious reserved watershed areas and forest reserves in the North.

 

Ms Siriporn said every effort would be taken to avoid harming sensitive Thai-Burmese relations.

 

Initiated more than 20 years ago, the project has been under the responsibility of first the Electricity Generating Authority and then the Irrigational Department

 

It was recently passed on to the Department of Energy Development and Promotion.

 

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7. CHAVALIT PROPOSES TO HELP DEVELOP BURMA

Feeling comes from 'bottom of my heart'

 

Bangkok Post;  April 9th 2001

Wassana Nanuam

 

Defence Minister Chavalit Yongchaiyudh will push for development in Burma, including a port and a coal mine, as a means of helping solve the problems of drug trafficking, illegal migration and other cross-border crime.

 

"I would like to see our neighbouring country become prosperous at the same time as we do," Gen Chavalit said.

 

"If we are developed while our neighbour continues to live in poverty, then peace will not be possible.

 

"This is a feeling from the bottom of my heart."

 

He termed the idea "cross border development".

 

It was already under way, he said, pointing to the 10-billion-baht Thai project to dam the Salween river in Burma. This would also benefit Chiang Rai and Chiang Mai in terms of power and water supply.

 

In an interview in the Defence Ministry magazine, Gen Chavalit said he planned to help Burma develop a port in the Gulf of Martaban, opposite Mae Sot in Tak province.

 

The port would open Burma to the Andaman Sea. China would also participate in the project, he said.

 

A large coal mine was also planned, opposite Bang Saphan district of Prachuap Khiri Khan province, in which Japan was interested.

 

"If we help them develop their country, the problems of drugs, illegal labour migration and cross-border crime will disappear," Gen Chavalit said.

 

The defence minister also said the armed forces would have to take on a diplomatic role to boost the bilateral relationship.

 

"Defence diplomacy will create good understanding and a brotherhood between military key figures of both sides," Gen Chavalit said.

 

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8. The following is an excerpt of a letter from a staff member of the International Rivers Network dated March 2001. It is included as a small insight into the thinking of the Chinese Government.

 

CHINESE PLANNING TO DIVERT WATER TO THE NORTHWEST PART OF CHINA FROM UPPER SALWEEN, UPPER MEKONG AND UPPER BRAMAPUTRA?

 

 

....This week, the Chinese Government are holding their National People's Congress (NPC) and Chinese People's Political Consultative Conference (CPPCC) and decree their 10th Five-year Plan.  In this plan, one of the focus is the Water diversion project from the South to the North.  The government officials believe that such a plan will solve the drought problems in Northern and Northwest China.   One of the proposals is to divert water from Upper Mekong, Upper Salween and Upper Bramaputra to the Northwest part of China.  An official claims that Burmese government always complains about flooding in Downstream Salween.  He implies that Burmese government welcomes China's water resources plan.....

 

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9. PLANT FUELS POLLUTION CONCERNS

 

The Nation; April 23, 2001

 

PRIME Minister Thaksin Shinawatra yesterday expressed concern over the planned lignite power plant in Burma's border town of Tachilek, saying it would be detrimental to the environments of both countries if Rangoon went through with the plan.

 

"If they are going to use lignite, it's going to be detrimental to the environment of Chiang Rai as well. I understand that the plant is only about five kilometres from the Thai border," Thaksin said.

 

Thaksin said Thailand would raise the issue with the Burmese government but dismissed suggestions the incident would further strain already tense bilateral ties following cross-border shelling between the two countries' armies over two months ago.

 

The premier's statement came a day after 44 containers of equipment heading for the power plant were ordered to return to a pier in Samut Prakarn's Pappadaeng district to be shipped back to China

 

Thaksin also said he was optimistic he would be able to reach a compromise with the Burmese government but if the power plant belonged to the Wa army, as some locals suspect, he could not compromise on the matter

 

Thailand has singled out the United Wa State Army (UWSA) as being responsible for millions of methamphetamines flooding Thailand.

 

Local residents in Chiang Rai's Mae Sai district were also up in arms yesterday over the planned power plant. They threatened to burn the 44 containers, which were parked just kilometres away from the Mae Sai-Tachilek border crossing. Many villagers, still upset over cross-border shelling in their area two months ago, called on authorities to open the containers, which they suspected of containing precursor chemicals bound for clandestine methamphetamine drug labs belonging to the UWSA.

 

Thaksin told reporters yesterday there were no chemicals in the 44

containers but did not say how he had come to that conclusion. He also said it was the transport company's decision to order the drivers to return.

 

Veera Cheeprasert, an executive at Praphamart Transport, the company

responsible for delivering the containers from Pappadaeng Pier to Tachilek, told reporters yesterday that he was disappointed by the entire episode

 

"A number of parties are wondering if there will be another attempt to get the containers through using this route. I can assure you that this won't happen. The sentiment in government and among the public is too high," Veera said.

 

Pang Pholchai, a leading environmentalist in Chiang Rai, said local

residents were stepping up their campaign against the planned power plant and called on the government to intervene on their behalf

 

Thaksin on Friday ordered that the shipment of lignite power-generation equipment be barred from crossing at Mae Sai-Tachilek in response to Rangoon's closure of the Thai-Burmese border crossing.

 

Third Army deputy commander Maj-General Chamlong Phothong has compared the planned power plant to the one in Lampang's Mae Moh district, where hundreds of local villagers have been admitted to hospital over the years after being exposed to pollution generated by the plant.

 

A compromise was reached in Mae Moh after the government agreed to spend millions on a high-quality filter to prevent acid rain.

 

Pang said the planned 24-megawatt Burmese plant needed to be 80 kilometres from the border to be considered safe for Mae Sai residents. Its current location, he said, would be too close for comfort, especially in the cold season when the wind blew from Burma to Thailand.

 

Mae Sai resident groups have been protesting for months, but the issue has attracted little government interest, he said.

 

LAST MODIFIED: Sunday, 22-Apr-01 15:55:37

 

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10. SHANS TAKE PART IN THE ANTI-POWER PLANT PROTEST

 

Shan Herald Agency for News

22 April 2001,  No: 04-18

 

Shans in Thailand were among the protesters against the electricity power plant under construction across the border, reported Moengzay from Chiangrai.

 

More than two hundred Shans residing in Maesai District, Chiangrai Province, 250 km northeast of Chiangmai, participated in the demonstrations against the convoy form Bangkok transporting generators and other materials that arrived in Maesai on 19 April for the lignite power plant 4 km across the border.

 

"It is not only the Thais who fear the sulfa dioxide emissions that will pollute the environment," one told S.H.A.N. "Our relatives in Tachilek are  not in a position to express their opinions against the project, but we can, and we are doing this on their behalf."

 

The convoy returned to Bangkok yesterday.

 

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11. POWER PLANT PART OF MAUNG AYE'S PET PROJECT, SAYS MAESAI RESIDENT

 

Shan Herald Agency for News

23 April 2001,  No: 04-20

 

An informed resident of Maesai told S.H.A.N. this morning the power plant under construction in the twin city of Tachilek across the river was part of General Maung Aye's plan to make the city an industrial zone.

 

The lignite power plant, located on a 25 acre land near Ponglo Pagoda at Ban Sansai in Tachilek, is 4 km away from the border. Its foundation was laid down by Gen Maung Aye, who, apart from being Vice Chairman of the ruling State Peace and Development Council and Commander-in-Chief of the Army, is also responsible for economic affairs, on 9 May last year.

 

The cost of the plant that is expected to generate 12-megawatt of electricity is reported to be B. 250 million. The generator was purchased from Shandong Yangguang Engineering Corporation in China at a cost of B.160 million. The expenditure was reported to be underwritten by Myanmar Mayflower Bank, the largest shares of which belong to Wei Hsiaokang, the Chinese-Wa chieftain who is on the wanted list of both Thailand and the United States.

 

Large deposits of lignite coal to be used at the plant are located in Monghpyak and Kengtung, 78 km and 160 km respectively north of Tachilek. Both had already been surveyed by Siam Lignite Company last year under the auspices of Maj-Gen Thein Sein, Commander of the Triangle Region Command with headquarters in Kengtung.

 

Residents in Maesai, Chiangrai Province, had protested against their district officer on his return from the foundation stone laying ceremony in May last year. The grave effects of the power plant towards the environment and tourism were also discussed at a seminar at Wangthong Hotel in Maesai on 30 August.

 

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11. STOP FIRES BEFORE THEY TAKE HOLD

 

Commentary on the Politics of the Tachilek Power Plant and the Environment 

By Wasant Techawongtham

 

Bangkok Post: April-27, 2001

 

The controversy over the shipment of power plant parts to Burma started out as a military/political incident between two countries. But it should soon become clear that the undercurrent of environmental concerns is equally, if not more, significant and long lasting in the relations between countries of the region.

 

In any military or political incident, there are a number of avenues and mechanisms, either bilateral or multilateral, available for conflict resolution. Other than bilateral discussions, there appears to be no avenue or mechanism to resolve environmental conflicts between two countries.

 

When Foreign Minister Surakiart Sathirathai visits Burma next week, he will raise with his counterpart Thailand's concern about air pollution from the planned lignite-fired power plant only a short distance from the border. But few people expect Burma to fully address the Thai worries based on its past responses to concerns over the production of drugs on its territory.

 

Short of military operations, there is nothing Thailand can do to stop the plant's construction or to ensure that sulphur dioxide emitted by the plant falls within acceptable environmental standards.

 

Senator Panat Tasneeyanond, a former prosecutor, says Burma is bound by an international legal principle whereby a state is responsible for damage caused by its action to its neighbour(s). A damaged country could complain to the World Court.

 

But litigation is hardly the Asian way. Conflict avoidance through diplomacy is still the preferred, though hardly a satisfactory, way.

 

Mr Panat suggests that a channel yet to be explored is an environmental forum as part of Asean. However, the regional grouping is more effective at talking trade than solving any other transnational problem. Members are too reluctant to step into the internal affairs of other members, not to mention their complete lack of interest in environmental issues.

 

The fact that pollution knows no boundaries has long been recognised, but not in this region where complacency prevailed until the haze crisis in Indonesia made headlines around the world.

 

Vast forest tracts in Indonesia's Sumatra and Kalimantan which had been transformed into palm plantations were consumed by fire, ironically just at the onset of the economic crisis that would consume the region. The soot-carrying smoke blew across the sea, blanketing Malaysia, Singapore and southern-most Thailand.

 

In a clumsy response, Asean adopted an ad-hoc Regional Haze Action Plan to deal with the fire. The plan did little to fight the fire, which eventually was doused by rain, but at least it demonstrated that the haze had sparked a flicker of recognition among Asean members of the threat of trans-boundary pollution. Unfortunately, that spark died out together with the fire two years later.

 

Perhaps the Mae Sai-Tachilek incident will re-ignite that recognition. It will not be the last instance where an action in one country causes an environmental problem that spills over into a neighbour.

 

There have been such instances in the past, the impact of which was not immediately felt or recognised. The damming of the mighty Mekong by China must have affected the lower part of the river which passes through Burma, Laos, Thailand and Cambodia. But no one has raised any objection, either out of political expediency or because no one has recognised the possible impact.

 

A mechanism to resolve environmental conflicts will become more necessary as countries in the region intensify development to meet global competition. It will be an uphill task and it may come too late, but regional peace may depend on it.

 

Wasant Techawongtham is Deputy News Editor for Environment and Urban Affairs, Bangkok Post.

 

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12. DAM CREATES BANGLADESH, MYANMAR TENSION

Agencies via Xinhua
China Daily;  15th January 2001

COX'S BAZAR, Bangladesh: Bangladesh said yesterday its troops were ready to respond quickly if Myanmar soldiers opened fire across the countries' border or if Myanmar resumes construction of a dam on the Naf border river.

"We are ready for a prompt and appropriate response if they pull the trigger again or resume construction of the dam," said Colonel Shawkat Ali, a commanding officer of the Bangladesh Rifles (BDR) border force.

Tension along the border in southeast
Bangladesh has been high for the past two weeks since Myanmar began building a dam, or embankment, on the Naf river at Totardia to divert water for irrigation and shrimp farming.

Bangladesh says the structure will cause soil erosion and flooding on the Bangladesh side and has demanded that it be stopped. The two sides exchanged fire across the Naf on January 8 but there were no casualties. Myanmar then suspended construction of the dam but deployed some 35,000 troops along its 320 kilometres border with Bangladesh, Bangladesh military officers say.

The Naf forms part of the border. Ali said
Bangladesh had deployed more than 10,000 paramilitary troops to face any attack from Myanmar.

Witnesses said BDR troops have taken up position in fortified positions and bunkers.

"We are maintaining a round-the-clock alert," Ali told reporters. "We are ready to defend our interests along the frontier. ''

 

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13. DAM HEAD TAKEN, THREE DEAD IN RAID:  KAREN REBELS BOAST OF MARCH 5 CONQUEST

 

Bangkok Post - March 11, 2001

Supamart Kasem

 

A dam construction director was abducted and three Burmese soldiers killed in a raid by Karen National Union rebels on a construction site in Mon state on March 5, a KNU officer said yesterday.

 

Mahn Sharlaphan, general-secretary of the KNU, said the foray was carried out by soldiers from the KNU's 6th Division led by Capt Hte Nay, Capt Sa Klae and Capt Mahn Htun.

 

The attack was on a military force protecting the dam construction site, 50km south of Moulmein, the capital of Mon state.

 

The assault was launched shortly after midnight. Burmese troops withdrew from the site after a 30-minute exchange of fire, leaving behind three dead soldiers, one of them a captain.

 

The KNU soldiers set fire to a warehouse, destroying 120 drums of fuel and lubricants for heavy machines, before fleeing. They took with them Tint Lwin, the dam construction director.

 

Pado Mahn Sharlaphan said the KNU soldiers were heading for a KNU stronghold opposite Tak province where the construction director would be released.

 

The officer said the raid was intended to show Rangoon the KNU is able to provide protection for people living along the border and also repel invaders in areas under its control.

 

However, he said the KNU still adheres to the policy of holding ceasefire talks with Rangoon.

 

Rangoon and the KNU reached a ceasefire agreement in 1992, but they failed in subsequent talks to find ways of peaceful co-existence and fighting resumed.

 

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14. SINO-THAI POWER SHARING DEAL STRUCK

 

South China Morning Post, Friday, November 10, 2000

 

By Julia Han

 

Power authorities from China and Thailand recently signed an investment agreement to jointly exploit the hydroelectric power in Yunnan Province, Xinhua News Agency reported on Friday.

 

The Jinghong Hydropower Station in southwest Yunnan Province will cost 10 billion yuan (about

HK$9.2 billion). According to the agreement, Thailand will own 70 per cent of the station while China will hold the remaining 30 per cent.

 

The construction of the power station is to start in 2006 and the station will begin to supply 1.5 million kilowatts of power to Thailand annually from 2013,  according to Yang Xiangze, vice general-manager of  the Yunnan Power Group Company.

 

The Jinghong Hydropower Station is located in the suburb of Jinghong City in south Yunnan's

Xishuangbanna Dai Autonomous Prefecture, 300 kilometres north of Thailand. With an installed capacity of 1.5 million kilowatts, the station is one of the eight power stations planned on the Lancang River, in the upper reaches of the Mekong River.

 

The Yunnan Power Company and the Thailand's GMS Company have set up a consultancy firm to take charge of the preparation work.

 

According to Mr Yang, Yunnan is planning to complete the 5.5 million kilowatts Nuozhadu

Hydropower Station in 2005, which will send 1.5 million kilowatts of electricity to the neighbouring Thailand annually from 2014.

 

Yunnan boasts rich water energy resources, with about 90 million kilowatts of exploitable installed capacity, or 23 per cent of the national total. The province now has 7 million kilowatts of installed capacity and 70 per cent is from hydropower. In addition to meeting its own power demand, the province will, as part of China's west-east power transmission project, send electricity to thepower-hungry southern China.

 

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